3.

4 RESEARCH METHODOLOGY
The term research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solution(s) towards the concerned problem or in certain generalizations for some theoretical formulation. RESEARCH DESIGN Research design states that research design is the arrangement of conditions for collections and analysis of data in a manner that aims to combine rele!ance to the research purpose with economy in procedure." #t in!ol!es defining the research problem, determining how to collect the data and from whom, establishing the ways the data will be analyzed, estimating costs and the preparation of research proposal. #t is purely and simply the frame wor$ or plan for a study that guides the collection and analysis of the data. #f emphasizes that the early decisions. %urthermore, there is a constant reconsideration of earlier decision in light of the later decisions. TYPE OF RESEARCH The research design of the study is analytical research design. #n analytical study, one has to use facts or information already a!ailable and analyze these to ma$e critical e!aluation of the material. DATA AND METHODOLOGY OF THE STUDY &ata plays !ery !ital roles in any research program. 'econdary data in the form of statements li$e profit and loss statement, cash flow statement, nnual reports etc were e(tensi!ely used for the study. &iscussions with the officials of the firm pro!ided the additional information about the company. The data of T)* for the year (+,,-.+,,/ to +,0,.+,00) used in this study, has been ta$en from secondary sources i.e., from published annual reports of the company. 1diting, classification and tabulation of the financial data, which are collected from the abo!e.mentioned sources, ha!e been done as per the re2uirements of the

studies. %or assessing the performance of the wor$ing capital position, in this study the techni2ue of ratio analyzed in following ways3

nalysis of ratios. nalysis of component of gross wor$ing capital ()urrent assets). nalysis of component of current liabilities.

%or assessing the beha!ior of data, statistical techni2ues ha!e been used. The statistical techni2ues ha!e been used. The statistical techni2ues that used in this study are3

Ratio analysis Trend analysis 'chedule of changes in wor$ing capital )orrelation nalysis

3.5 FORMULAS FOR RATIO ANALYSIS

0. 4or$ing capital ratio 5 )urrent assets 6 )urrent liabilities +. 7uic$ Ratio 5 7uic$ asset 6 )urrent *iability 8. )ash ratio 5 ()ash 9 mar$etable 'ecurities)6)urrent liability. :. #n!entory turno!er ratio 5 )ost of goods sold 6 !erage in!entory ;. &ebtors turno!er ratio 5 'ales6&ebtors -. 4or$ing )apital Turno!er Ratio 5 'ales 6 <et 4or$ing )apital /. =ross 4or$ing )apital to 'ales Ratio 5 )urrent asset6 'ales >. =ross ?rofit Ratio = =ross ?rofit6 <et 'ales@0,, A. <et profit ratio 5 (<et profit6'ales)@ 0,,

0,. Return on total ssets5 (<et profit6Total sset) (0,,