A STUDY ON WORKING CAPITAL MANAGEMENT OF RUBCO RUBBERIZED COIR MATTRESS DIVISION, KOTTAYAM, KE

A Project report Submitted to

BHARATHIAR UNIVERSITY
in partial fulfillment of the requirements for the award of the degree of Master of Business Administration
BY

NESIM SALIM (Reg.no.N0MBAAA0025)

Under the Guidance of

Mr. MANOJ, MBA (Lecturer, Department of Management Studies )

DEPARTMENT OF MANAGEMENT STUDIES SREE SARASWATHI THYAGARAJA COLLEGE POLLACHI

CERTIFICATE
Certified that this is a bonafide report of the project study titled A Study on Working Capital Management of

Rubco Rubberized Coir Mattress Division, Kottayam

Project Guide

Co-ordinator

DECLARATION
I,Nesim Salim here by declare that this project report entitled
A Study on working capital management of Rubco Rubberized Coir Mattress Division, Kottaym , is a bonafide project work done

by me under the guidance of Mr.Manoj, M.B.A; faculty Department of Management Studies STC. College, Pollachi , during the period 2010-2012 in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration, Bharathiar University.

Place : Date
Nesim Salim

ACKNOWLDGEMENT

My Grace is Sufficient for YouI thank the God Almighty for showering his blessings at each stage of this project work.

I extent my heartful thanks to Dr. V. Kulandaiswamy, Principal STC college pollachi, and Dr.S. Mani, the Dean and all other faculty members of the MBA department of this centre . I owe a great debt of gratitude to my guide Mr.Manoj, Department of management Studies STC College, Pollachi for the valuable guidance and advice extended to me for the completion of the study.

I also express my sincere thanks to Mr.Arun Viswambharan Administrative Cum Personnel Officer and Mrs.Rasiya P.K Accounts Officer, RUBCOs rubberized coir mattress division Kottayam, for giving me an opportunity to do this project at the company.

I express my sincere thanks to my beloved parents, friends for their coperation and inspiration throughout the study.

Finally I would like to express my sincere gratitude to all those who have helped me directly or indirectly for the completion of this humble effort.

Nesim Salim

CONTENTS

List of tables List of charts Chapter Title Page No

1.

Introduction
1 2 3 3 4

1.1 General Introduction 1.2 Problem formulation 1.3 Objectives 1.4 Methodology 1.5 Limitations
2. Profile

2.1 Industrial Profile 2.2 Company Profile 2.3 Product Profile

5 6 11

3.1 Ratio analysis 3.2 Working capital management

28 32 37 64 66 67

LIST OF TABLES

PAGE NO.

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13)

Table Showing Net Working Capital Table Showing Current Ratio Table showing Quick Ratio Table Showing Proprietary Ratio Table Showing Inventory Turnover Ratio Table Showing Working Capital Turnover Ratio Table Showing Current Asset Turnover Ratio Table Showing Debtors Turnover Ratio Table Showing Debtors Collection Period Table Showing Creditors Turnover Ratio Table Showing Average Payment Period Table Showing Fixed Asset turnover Ratio Table Showing Net Profit Ratio

37 40 42 44 46 48 50 52 54 56 58 60 62

LIST OF CHART

PAGE NO.

1) 2)

Chart Showing Net Working Capital Chart Showing Current Ratio

38 41

3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13)

Chart showing Quick Ratio Chart Showing Proprietary Ratio Chart Showing Inventory Turnover Ratio Chart Showing Working Capital Turnover Ratio Chart Showing Current Asset Turnover Ratio Chart Showing Debtors Turnover Ratio Chart Showing Debtors Collection Period Chart Showing Creditors Turnover Ratio Chart Showing Average Payment Period Chart Showing Fixed Asset turnover Ratio Chart Showing Net Profit Ratio

43 45 47 49 51 53 55 57 59 61 63

Chapter-I

INTRODUCTION

Chapter-II

PROFILES

Chapter-III

THEORETICL FRAMEWORK

Chapter-IV

DATA ANALYSIS & INTERPRETATION

Chapter-V

FINDINGS & SUGGESTIONS

CONCLUSION

BIBLIOGRAPHY