SYNOPSIS APPROVAL

ON
“WORKING CAPITAL”
OF
With reference to BRANDIX APPAREL INDIA PVT LTD,
VISAKHAPATNAM.
For the partial fulfillment of the degree of Finance
Submitted By
Mr. DILEEP KUMAR KONATHALA
Reg No: A23MB0127

Under the Esteemed guidance of

J. PRAMEELA
MBA, Asst professor
ADARSH COLLEGE OF ENGINEERING
CHEBROLU

CENTRE FOR DISTANCE AND ONLINE EDUCATION

ANDHRA UNIVERSITY
VISAKHAPATNAM
 INTRODUCTION
Working capital management takes care of the problems that arise during the
management of current assets, current liabilities and interrelationship that exist between them.
Thus it is also known as current asset management and current liabilities from an integral part in
the balance sheet of the firm. Working capital is an integral of overall corporate management, the
finance corporate management the finance manager has to carry out the finance function is the
face of risk cannot be predicated with certainty.

Finance is one of the basic foundations of all kinds of economic activities. Financial
management is one integral part of overall management. It is not a totally independent area it is
concerned with the acquisition, financing and management of assets with some overall goal in
mind. Financial management is important because it has an impact on all the activities of
financial management. The basic objective of financial management is to maintain the liquid
assets and maximization of the profitability of the firm. Efficient management of every
businesses enterprise is closely linked with efficient management of the finance. Maintenance of
liquid assets means that the firm has adequate cash in hand to meet its obligations at all times. A
business firm is a profit seeking organization; Profit maximization is also well consideration to
be an important objective of financial management.

Financial management is mainly concerned with the proper management of finance

function. Risk: cost and control considerations are properly balanced in a given situation and
there is optimum utilization of funds. Financial management emerged as a distinct field of study
at the turn of 20th century. Financial management as an integral part of overall management is not
totally independent area. It draws heavily on related disciplines and various field of study is Such
as economics, accounting, marketing, production and quantitative methods. It helps in profit
planning, capital spending, measuring costs. Controlling inventory, accounts receivable, etc. it is
essentially helps in optimizing the financial from a given input of funds.
 A study of financial management with particular reference to the working capital
management in any sector is a challenging task and endeavour in this direction is to analyze the
working capital balances management, receivables and inventory management. Working capital
is the amount required to meet day-to-day operation at the organization. An absence of this
makes the functioning of the organization blind. A proper study on working capital management
results in prevention of mismanagement and misutilization of funds.

Funds are required for two basic reasons in any organization. First, funds are needed for
the creation of productive, capital and purchase fixed assets. Secondary to finance a part for the
day-to-day running of business which in other words is the working capital.
 NEED FOR THE STUDY

Working Capital are those funds, which are required for day-to-day operations of the firm.
It can be said that Working capital is the basic necessity of any organization. It is that money
without which the functioning of any industry becomes blind. The further development of
organization is difficult.

Working Capital gives an idea to the stakeholders as well as the management of any firm
about the functioning of it. Preparation of a separate statement of Working Capital gives us an
idea about the Gross as well as the Net Working Capital of the concerned firm of organization.
By this statement one can know or plan about the day-to-day expenses that the firm meets.
Therefore if is compared with the blood circulation in a body without which the body cannot
function. With this we can know the significance of Working Capital in any firm. Working
Capital is the difference between the current assets and current liabilities.

Working Capital must also be adequate (i.e.,) not too much and not too low. An optimum
level of it is to be maintained. Maintenance of optimum level of Working Capital is a good sign
for the progress of the organization.

The study of Working Capital Management in BAIC gives out the exact idea of Working
Capital because it is an organization with huge production and also requires huge funds to meet
its day-to-day expenses. To find out the optimal level of inventory and other current assets for
the operations of the firm. Hence the present study working capital management was taken up in
this company.
 OBJECTIVES OF THE STUDY

1. To study about an over view of capital management. with reference to

Visakhapatnam
2. To study about the working capital management of Brandix Apparel India City in
particular. with reference to Visakhapatnam
3. To study about the changes in working capital position during the study period. with
reference to Visakhapatnam
4. To study the working capital through ratios. with reference to Visakhapatnam
5. To offer appropriate suggestions where ever necessary. with reference to
Visakhapatnam
 METHODOLOGY OF THE STUDY

The information for the study is obtained from two sources namely.
1. Primary Sources
2. Secondary Sources
PRIMARY SOURCES:
It is the information collected directly without any references. It is mainly through
interactions with concerned officers & staff, either individually or collectively; some of the
information has been verified or supplemented with personal observation. These sources
include.
 Thorough interactions with the various department Managers of VSP.
 Guidelines given by the Project Guide, Sri DSR Murthy, Asst. Manager (F&A) of
Stores Accounts Section Brandix Apparel India /VSP.
 Store Keepers
SECONDARY SOURCES:
This data is from the number of books and records of the company, the annual reports
published by the company and other magazines. The secondary data is obtained from the
following :
a) Stores Ledger
b) Bin Cards
c) Stores Accounts Records
d) Other books and Journals and
e) Annual Reports of the company
 COMPANY PROFILE

Brandix Apparel India City (BAIC) is conceptualized and managed by Brandix, Sri
Lanka’s largest apparel exporter. It offers a host of attractive financial and operational incentives
for investors and procedural ease for facilitating investment. It’s offering a unique one-stop shop,
with end-to-end apparel solutions; BAIC is a first of its kind in the world. It is a veritable
‘Paradise’ for the global apparel industry.

It’s based on a breakthrough ‘Fiber-to-Store’ concept; it will house world-class apparel

chain partners, from fashion design to manufacturing all underdone roof, offering seamless
integration and unmatched value.

BAIC is spanning across 1000-acres, it’s is located in the bustling city of Visakhapatnam,
in the State of Andhra Pradesh, India. It provides the platform to unlock the massive synergies
that India offer as a textile destination.

About BAIC:

Brandix Apparel India City has developed an ecologically sustainable site that features green
infrastructure and sustainable designs. BIAC’s integrated green infrastructure and efficient
engineering designs ensure that the final construction maximizes eco-industrial balance and meet
sustainability business objectives.

Brandix Apparel India City as a business group has been recognized and lauded in Sri
Lanka for its commitment to employees and the community. Brandix has extended the same
gesture to BIAC and its operations in Atchutapuram, Andhra Pradesh, India. Its community
projects in Atchutapuram are dedicated to supporting community service projects that focus on
water, health, sanitation, community empowerment and education.
Brandix Apparel India:
Brandix Apparel India, the Indian manufacturing arm of Brandix Lanka Ltd, commenced
commercial production for export at BAIC in July 2008. It has systematically increased its local
workforce, and today has a combined strength of 3300 associates, majority women from neigh
boring villages, with world-class apparel being exported to top customers in US and Europe.
The facility is located in Brandix Apparel India City (BAIC) SEZ being a revolutionary
development in the apparel industry; a unique, integrated apparel supply chain city, managed by
Brandix Lanka Ltd. BAIC spread over 1000 acres in the port city of Visakhapatnam (or Vizag
for short) in the eastern state of Andhra Pradesh, it brings alive an avant-garde 'Fiber to Store'
concept. BAIC will bring together world class apparel chain partners from the design table to
consumer brands in flawless integration.
Conceived and nurtured by Brandix, Sri Lanka's largest apparel exporter, BAIC
highlights India's phenomenal synergies in the world of textiles. To leverage India's immense
potential for economies of scale and other robust business fundamentals in its fast growing
economy, Brandix brings 30 years of industry expertise and invites other world class experts to
join its value chain to enjoy assured mutual benefits of investment.
 CONCLUSION
The study on the working capital management of Brandix Apparel India Pvt Ltd.was taken with
a view to explore the scope for improvement of working capital management:
 Working capital position is good, but then there is always some scope improvement and
growth
 The due consideration to analysis, findings and suggestions the company can achieve
further success in terms of increasing sales and profitability.
 As with the minute changes that has been occurred in the ratios there can also be covered
with slow increases in the sales
 The study find out the company has higher current liabilities. So it is better to reduce the
liabilities portion
 The study find out company have got negative working capital past two years
 The company can take a challenge with its competitive and high spirit to face the market.
 BIBLOGRAPHY
Textbook References:

Name of the Book Author

Financial Management I.M.Pandey

Financial Management S.C.Kuchal

Managerial Accounting Shashi Sharma and Gupta

Web Site References:

www.brandixapparelcity.com

www.brandix.com