Professional Documents
Culture Documents
Summary
Finance function is a core function in any organization. I financial management is that managerial
activity which is concerned with planning and counseling of firm's financial resources. One such area of
financial management is "Working Capital" and management of this is known as "Working Capital
Management". In practice, a firm has to employ short-term assets and short run sources of financing.
The management of such assets, and short run sources of financing. The management of such assets,
described as working capital management or current assets as working capital management is current
assets management is one of the most important aspects of overall financial management. Technically
the management is an integral part of the overall financial management. To that extent it is similar to
the long-term decision making process because both entail an analysis of the effects of the risk and
profitability.
The management is concerned with the problems that arise in attempting to manage current assets,
the current liabilities and the interrelationship that exist between them. The term current assets refer
to those assets, which in ordinary course of business can be, or will be turned into cash within one
year without undergoing a diminution in value and without disrupting the operations of the firm. CL
are those liabilities which are intended at their inception to the paid inn ordinary course of business,
within a year, out of CA's or earnings of the owner.
The goal of working capital management is to manage firm's current assets and current liabilities in
such a way that a satisfactory level of working capital is maintained. This is so because if the firm
cannot maintain a satisfactory level of working capital, it is likely to become insolvent.
I. Introduction
II. Environmental analysis of FMGC sector
A. Growth prospects
III. An overview of the Indian FMCG industry
IV. The top 10 companies in FMCG sector
V. Analysis of Indian FMCG sector
VI. Company overview: ITC Group
A. History
B. Structure
C. Awards and certificates
VII. SWOT analysis of ITC
VIII.Financial statement analysis of ITC
IX. Project methodology
X. Findings and recommendations
XI. Conclusion
XII. Bibliography
Summary
Well-established distribution networks, intense competition between the organized and unorganized
segments characterize the FMGC sector. It is expected to grow by over 60% by 2010. That will
translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector
will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care,
male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be
the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in
2002-2004, it has been able to make a fine recovery since then. For example, Indian Tobacco
Company Limited (ITC) has shown a healthy growth in the last quarter. An estimated double-digit
growth over the next few years shows that the good times are likely to continue.With the presence of
12.2% of the world population in the villages of India, the Indian rural FMCG market is something no
one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better
growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply
chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low
per capita consumption for almost all the products in the country, FMCG companies have immense
possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if
they are able to take the consumers to branded products and offer new generation products, they
would be able to generate higher growth in the near future. It is expected that the rural income rise in
2008, boosting purchasing power in the countryside. However, the demand in urban areas would be
the key growth driver over the long term. Also, increase in the urban population, along with increase
in income levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption
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Finance
White papers
Working Capital
Management: The
Secret To Business
Success
Working capital management involves the management of debtors, cash, creditors
and stock. Credit is an unavoidable tool in modern business. This means that if you offer
no credit you might end up having no sales. Offering lenient credit terms may add up to
high sales and the sales may turn...
Tags: Working Capital, Debtor, TakingITGlobal, Working Capital Management, Sales Strategy...,