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    Summer Traning Report ON Analysis of Working Capital Management OF Shri Ram Piston & Rings LTD

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    Nishant Sharma
    This document summarizes a summer training report on analyzing the working capital management of Shri Ram Piston & Rings LTD. The objectives are to analyze the company's working capital and identify financial strengths and weaknesses. The company manufactures precision automobile components and has over 6000 employees. It supplies major automakers in India and abroad. The analysis finds that the company has sufficient working capital but current and quick ratios are below ideal levels. It recommends improving inventory management and maintaining optimal working capital levels.

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    Summer Traning Report ON Analysis of Working Capital Management OF Shri Ram Piston & Rings LTD

    Uploaded by

    Nishant Sharma
    77 views11 pages
    This document summarizes a summer training report on analyzing the working capital management of Shri Ram Piston & Rings LTD. The objectives are to analyze the company's working capital and identify financial strengths and weaknesses. The company manufactures precision automobile components and has over 6000 employees. It supplies major automakers in India and abroad. The analysis finds that the company has sufficient working capital but current and quick ratios are below ideal levels. It recommends improving inventory management and maintaining optimal working capital levels.

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    SIP presentation of shri ram pistons

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    This document summarizes a summer training report on analyzing the working capital management of Shri Ram Piston & Rings LTD. The objectives are to analyze the company's working capital and identify financial strengths and weaknesses. The company manufactures precision automobile components and has over 6000 employees. It supplies major automakers in India and abroad. The analysis finds that the company has sufficient working capital but current and quick ratios are below ideal levels. It recommends improving inventory management and maintaining optimal working capital levels.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    77 views11 pages

    Summer Traning Report ON Analysis of Working Capital Management OF Shri Ram Piston & Rings LTD

    Uploaded by

    Nishant Sharma
    This document summarizes a summer training report on analyzing the working capital management of Shri Ram Piston & Rings LTD. The objectives are to analyze the company's working capital and identify financial strengths and weaknesses. The company manufactures precision automobile components and has over 6000 employees. It supplies major automakers in India and abroad. The analysis finds that the company has sufficient working capital but current and quick ratios are below ideal levels. It recommends improving inventory management and maintaining optimal working capital levels.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 11

    SUMMER TRANING REPORT

    ON
    ANALYSIS OF WORKING CAPITAL MANAGEMENT
    OF
    Shri Ram Piston & Rings LTD

    Presented By :- Nishant Kumar Sharma


    MBA
    2nd year

    CONTENT

    Objective of the Study


    Company Profile
    Collaboration
    Customers
    Research Methodology
    Data Analysis
    Findings
    Recommendations

    OBJECTIVE OF STUDY
    1. Primary Objective :- Primary Objectives is to Analysis of Working Capital
    Management
    2. Secondary Objective :- There are few secondary objectives : -

    To see whether the company is prepared with enough working


    capital to face any kind of contingencies.

    To identify the financial strength and weakness of the company

    To see how the day-to-day operations of the company takes place.

    Company Profile

    Shriram Pistons and Rings Ltd. is one of the largest and the most sophisticated
    manufacturers of Precision Automobile Components
    SPRL manufacturing unit is located at Meerut Road in Ghaziabad
    The SPRL has the 6000+ skilled employees
    The annual turnover of SPRL is approx. US$176 million .
    recently set up a second, most modern new Plant at Pathredi, next to Bhiwadi
    Industrial Area (Rajasthan)
    The plant has been recognized as one of the most modern and sophisticated plants
    in North India in the field of automobile the production capacity of plant is as under:
    Piston :
    15.14 million per year
    Pin
    :
    13.0 million per year
    Rings :
    70.5 million per year
    Engine valves: 29.5 million per year

    Collaborations:

    Customers
    Domestic customer:
    Ford Motors
    General Motors
    Honda SIEL
    Mahindra & Mahindra
    Maruti Suzuki
    Nissan Motor
    Suzuki Powertrain
    Tata Motors
    Ashok Leyland
    HMT Tractors
    Mahindra & Mahindra
    New Holland
    Sonalika International
    Mahindra Swaraj

    Global customers:

    Ford, UK
    Ford, Germany
    Husqvarna Motorcycles (BMW), Italy
    Iveco, Italy
    Renault, France
    Renault, Spain
    Honda, Peoples Republic of China
    Honda, Thailand
    Hyundai, Korea
    Mega Motors, Iran
    WABCO, Peoples Republic of China

    RESEARCH METHODOLOGY

    Type of Study: The study carried out here is basically analytical in nature.
    This type of study relies on data which is already available.

    Type of Data used: The methodology involved for data collection was
    mainly through secondary data and was obtained from the companys
    financial statements and the companys website.

    Sources of Data: The source of data has been companys Balance Sheet
    and Profit and Loss Accounts over a period of past years.

    Tools used for Data Collection: Past Records of the company

    Data Analysis

    Findings

    As current ratio is showing an increasing trend , which implies that current asset, are
    more compared to current liabilities.

    Low current assets turnover ratio is not preferable and does not shows efficiency of
    management and proper utilization of the assets.

    SHRIRAM PISTONS AND RINGS LTD has a sufficient amount of working capital
    during the past three years. As company is showing increasing trend of working
    capital, which shows that company, does not kept its obligation for long time.

    Current ratio and quick ratio of the year are little less than that of the ideal figures
    i.e. ideal current ratio is 2:1 while quick ratio is 1:1.

    Debtors Turnover ratio reveals an decreasing trend during the period of study.

    Recommendations

    In case of inventory management ABC analysis, FSN technique, VED


    technique should be adopted to increase the efficiency of inventory
    management. Further a inventory monitoring system should be introduced to
    avoid holding of excess inventory.

    It is suggested to maintain a favorable current and quick ratios which shows


    a lesser than ideal figures. It can be done either through increasing current
    assets or decreasing liabilities

    With the help of proper inventory management systems, like demand-based


    management, etc. the company can reduce the need for working capital and
    inventories can be financed through accounts payable.

    The company should try and maintain an optimum level of working capital in
    order to improve upon the workings of the company.

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