STUDY ON MANAGEMENT OF WORKING CAPITAL OF COFORGE LTD

STUDY ON MANAGEMENT OF WORKING CAPITAL OF COFORGE LTD

RANJAN KUMAR

Abstract

The project report provides a comprehensive analysis of working capital management at Coforge IT Solutions Ltd., emphasizing the practical experience gained in a corporate setting. The report outlines the finance department’s functions, divisional structure, and decision-making processes related to working capital management.

Key aspects such as the relationship between a company’s short-term assets and liabilities, and the goal of ensuring sufficient cash flow for operational expenses and debt obligations are discussed. The report details the use of working capital in various aspects of the company’s operations, including raw materials, work in progress, finished goods, inventories, sundry debtors, and day-to-day cash requirements.

Furthermore, the report includes a detailed analysis of financial ratios over the last five years, such as working capital turnover ratio, quick ratio, current ratio, and inventory turnover ratio. It concludes that Coforge IT Solutions Ltd. Effectively manages its working capital, with all departments working in coordination. However, the report also provides suggestions for further improvement based on the project study, aiming to enhance the company’s progress.

The period considered for the study is five years i.e from Financial year 2018-19 to 2022-23.

The research methodology adopted for this study is both primary and secondary of data which include annual reports & websites, questionnaire, phone call interview & face to face meeting.

This project tries to evaluate how the management of working capital is done in Coforge IT Solutions Ltd. Through Intra Firm Ratio Analysis and comparative Statement Analysis. The Study of working capital management has shown that Coforge IT Solutions Limited has a fairly strong working capital position. The company is also enjoying reasonable profits.