1. INTRODUCTION
Working capital refers to a firm’s investment in short- term assets, viz., cash, short-term
securities, debtors, etc., It can also be regarded as that portion of the firm’s total capital which is
employed in short-term operations. It refers to all aspects of current assets and current liabilities.
In simple terms, working capital is the investment needed or day-to-day operations.
Change in its value or without affecting the operations of any firm. Current liabilities are
those liabilities, which are intended to be paid within a year out of the current assets or the firm’s
earnings.
OBJECTIVES OF THE
STUDY
To evaluate the financial performance of the company by
using Working capital.
To analyze the working capital performance of the
company for the last five years that is 2004-2008.
To find out net working capital every current year.
To find out funds from operation was previous year
METHODOLOGY
Primary Data :
The data was collected from the officials of the
organization.
Secondary Data :
Study was based on the secondary data, which are collected from the books, records,
journals and profiles of the organization.
LIMITATIONS OF STUDY
1.The information used is primary from
historical annual reports like profit and loss
account, Balance sheet.
2.Since financial matters are sensitive in
nature the same could be acquired easily
NDUSTRY PROFILE
Plastic have become synonymous with modern living. It is undoubtedly a product which
Penetrated extensively into the common man’s life. No wonder the industry has achieved in
terms of supply of raw material expansion and diversification of processing capacities and
manufacturing of processing machinery and equipment.

2. The Government of India recognizing the importance of plastics in agriculture appointed
on march 7th, 1981 a National Committee on the use of plastics in Agriculture under the
chairmanship of Dr. G.V.K Rao.
COMPANY PROFILE
Nandi has it's origins in the year 1979 when Mr S.P.Y Reddy, a technocrat left his job at Bhaba
Atomic Research Centre, Mumbai to start a plastic containers unit in Nandyal.
The company has grown at a fast pace and Mr Reddy who sensed an opportunity
in making pipes for irrigation started manufacture of PVC pipes in year 1984 and has fast
become leading manufacturer in Andhra Pradesh and later in India. With annual consumption of
50,000 tones of resin, Nandi group is one of the biggest plastic processors in Asia.
The group has either setup or acquired plants in different geographical locations of
south India to improve operational efficiency and to enhance customer satisfaction. Nandi group
sells PVC pipes under 4 brands of which Nandi brand is the most prominent.
FINDINGS
Maintenance of cash and bank balance is concerned it is too
low in relation networking capital.
Sundry Creditors have been increased considerably during the period
of study expect in 2004-05. The payment period is decreased from 60days in 2004-05 to 49 days
in 2005-06 and even just 6 days in 2006-07 and 48 days in 2007-08.
There is increase in networking capital from 2004 to 2007-08.
-05
Comparing the cost of sales between 2004 and 2007-08, it is also increased
-05
SUGGESTIONS
Cash management is not satisfactory hence it required special attention
by preparing cash budget for sufficient balance of cash, otherwise it
because tuff task to meet day to day cash requirements.
The increase is attributed because of overall increases in purchases
of raw materials, labour cost and other manufacturing and
administration costs, It is most need of the company to control these
costs at various levels.
The overall management of working capital is not good hence
is
suggested to take special care in management of debtors, inventor cash and cash balance