Financial Management Practices Essay

790 Words Aug 26th, 2013 4 Pages
A STUDY ON WORKING CAPITAL MANAGEMENT IN SMES

A SYNOPSIS

of the
PROJECT

Submitted to

BANGALORE UNIVERSITY

For the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

Mr. PUROHIT PIYUSHKUMAR N. (08CQCM6068)

UNDER THE GUIDANCE OF

MRS. KIRAN HIREMATH.

Dayananda Sagar College of Management and Information Technology

Shavige Malleshwara Hills, K.S. layout, Layout, Bangalore – 560078
Academic Year- 2008-2010

INTRODUCTION

SMES

The definition used by the Indian authorities is based on the level of investment in plant, machinery or other fixed assets whether held on an ownership, lease or hire purchase
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RATIONALE AND SIGNIFICANCE OF THE STUDY

SME’s form the back bone of any nation whether developing or developed. But the irony is that the real issues and problems that SME’s have been facing are not addressed as they should be. One such problem is the problem of timely availability of working capital.
Finance forms the life line of any business and if it not available when needed the most all day to day operations are effected and this in turn leads to various other problems (the worst result due to non-timely availability of working capital could be the closure of the enterprise). So it is significant to understand the business environment and how it creates a problem like scarcity of working capital of an enterprise. The study undertaken is also important so as to ascertain the impact of non-availability of working capital in time to
SME’s, on SME’s, large enterprises and the economy as a whole.

NATURE OF THE STUDY: STATEMENT OF THE PROBLEM

The problem which is addressed in this study is one of the most talked about issue i.e. the problem of timely availability of working capital to SME’s. The above mentioned problem will be addressed in this study by a detailed literature review from various available sources and through a case study of an SME facing this problem.

Objectives 1. To find out Working capital management problems in

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