A STUDY ON WORKING CAPITAL MANAGEMENT IN AVR MANUFACTURERS PVT LTD, CHENNAI

Abstract

The "A Study on Working Capital Management with Reference to AVR
Manufacturers" is the subject of this study. The issues that come to manage current assets,
current liabilities, and the relationships that exist between them are addressed by working
capital management. In order to achieve a sufficient level of working capital, working capital
management aims to manage the company's current assets and current liabilities. To
guarantee a fair margin of safety, the current assets should be sufficient to cover the current
liabilities.
This study's primary goal is to examine how well working capital is managed in
businesses and how effective such management is. The study's secondary goals include
determining the company's ideal level of current assets and liabilities, assessing the
company's liquidity position using various working capital-related ratios, and assessing its
financial performance using a trend analysis tool. Studying working capital management is
crucial because without properly managing working capital—making sure it's tracked,
planned, and evaluated regularly to remove any bottlenecks—a firm cannot turn a profit or
grow its turnover.
Tools like Trend Analysis, Ratio Analysis, Working Capital Leverage, Operating
Cycle, etc. are used in the research of Working Capital. The study also draws on the last five
years' worth of AVR Manufacturers' annual reports. Even elements like competitor analysis
and industry analysis were not taken into account when this project was being prepared. The
secondary data gathering strategy is employed for this investigation. The goal of the data
gathering was to investigate how the corporation managed its working capital. To address the
issue caused by the absence of rapid realisation of cash against products supplied, working
capital in the form of current assets is required. To maintain sales activity, sufficient working
capital is therefore required. This study has some restrictions, including sparse data, a brief
time frame, a small geographic scope, and a short duration