Important Topic Final

                      [pic 1]

Course Id : Fin 301

                                                               Section:

Report On

Working capital management Square & Beximco Pharmaceuticals Ltd.

     This Report is submitted to:

                                       Dr. Mohammad Kamrul Hasan

                                                        Faculty, School of Business;

                                                  Independent University, Bangladesh

SUBMITTED BY:

Submission date : 26th, July  2016                      

LETTER OF TRANSMITTAL

July 26th, 2016

To

Dr. Mohammad Kamrul Hasan

Faculty, School of Business;

Independent University, Bangladesh

Subject: Report on Working capital management Square & Beximco Pharmaceuticals Ltd.

Sir,

It is great pleasure for us to submit the report on the topic on “Working capital management Square & Beximco Pharmaceuticals.’’ This has been assigned to us as part of our course. It was our great pleasure & honor that we got the opportunity, working with this topic. We have tried our best to the conclusive while preparing the report and our intention was never directed to undermine any concerned

We hope that the efforts given in the preparation of the report will be fruitful and beneficial for enhancing knowledge of us and oblige thereby.

Sincerely Yours,

                                                       Acknowledgement

At first, we express our deep gratefulness to the almighty Allah for giving us assistance in the way of life. A large number of people contributed significantly in making this report possible.    

The special thank goes to our helpful Faculty and my group members. The supervision and support that they gave truly help the progression and smoothness of the report. The co-operation is much indeed appreciated. A lot of effort and study have been put in to make this report a reality. This would not have been possible without the genuine support and assistance provided by the people whom we approached during the various stages of preparing this report.

At last, our heartfelt thanks to all of our friends as they tolerate our stubbornness and all the times that they helped us.

EXECUTIVE SUMMARY

The report is prepared as part of our course FIN 301. Here we have mentioned many things related to this topic. We have discussed about Working capital management of Square & Beximco Pharmaceuticals Ltd. The working capital ratio is a key figure in financial management. It characterizes how much financial funds are required by short term, operating activities. The calculation of working capital functions are as so; Inventory + Trade Receivables – Trade Liabilities. The core objective is maintaining the lowest working capital as possible in order to reduce financial responsibility, without endangering the ability to operate the business. Furthermore the reduced working capital forces efficiency of invested capital, releases cash from balance sheets and improves balance-sheet-structures.

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INTRODUCTION OF WORKING CAPITAL

 Working   capital means the part of the total assets of the business that change from one from to another from in the ordinary course of business operations.  

Working capital also known as net working capital or NWC, is a financial metric which represents operation liquidity available to a business. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. It is calculated as current assets minus current liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a Working capital deficit. Working Capital = Current Assets − Current Liabilities. For the successful working of any business organization, fixed and current assets play a vital role. Management of working capital is essential as it has a direct impact on profitability and liquidity. A successful commercial organization needs two types of assets, viz., fixed assets and current assets. Fixed assets include—land, building, plant, machinery, furniture, etc. These are not only purchased for the purpose of sale, but also for the purpose of earning profit for many years. Current assets include, raw materials, work-in-progress, finished goods, sundry debtors, bills receivables, cash, bank balance, etc. These are purchased for the purpose of production and sales, like raw material into semi finished products, semi finished products into finished products, finished products into debtors and debtors Transferred into cash or bills receivables. The fixed assets are used in increasing production of an organization and the current assets are used in using the fixed assets for day to day working. The management of this working capital is known as working capital management. The term working capital refers to the amount of capital which is readily available to an organization. Management of working capital deals.