The project is about the study of management of working capital in western India plywoods, valapattanam, Kerala.
Working capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
Working capital management requires monitoring a company's assets and liabilities to maintain sufficient cash flow to meet its short-term operating costs and short-term debt obligation
Proper management of working capital is essential to a company's fundamental financial health and operational success as a business
COMPANY PROFILE
WESTERN INDIA PLYWOODS
The Western India Plywoods has been pioneering in the manufacture of plywood related panel products for the last seven decades.
Their Products ranges from Plywoods, Block boards, Flush door, Shuttering and Marine Plywood, Aircraft Plywood etc.
Established in 1945
Is today one of the biggest woods based industrial integrated complexes in the country and also in South-East Asia with an employee strength of 1200.
Company’s liquidity position is decent as of the analysed period.
Working capital is managed efficiently for the last few years.
Current assets and liabilities are in a safe amount of proportion to each other.
Company is able to generate more profits without the addition of as much capital invested.
Even though the financial position suffered a small decline during the covid period, company was able to recover from it for the last 2 years.
The company follows efficient production process as the products are sold in a relatively quick time period.
SUGGESTIONS
The amount of current liabilities have been increasing gradually over the years. This should be reduced for the proper liquid flow.
Specifically, borrowings takes up a large amount of current liabilities. Company can keep an eye on that.
Company should maintain the production quantity as it is now.
CONCLUSION
Western India plywoods has been in working in the plywood industry for decades. They have achieved this by various strategies.one of these strategy is the efficient use of working capital. The company is in a safe liquidity position for now even though they suffered some minor setbacks during the covid period. The company have been processing credit efficiently and they are treating both trade payables as well as trade receivables with utmost consideration.
so, it can be understood that the company is in a safe liquid position for now.
