This document is a summer training project report submitted by Syed Anzar Ali for their MBA program. The report analyzes the working capital management of ITI Limited, a public sector undertaking in India. The objectives are to analyze ITI's working capital, liquidity and profitability using ratio analysis, and to suggest improvements. Secondary data sources were used. The findings show ITI has positive working capital and increasing current assets. Suggestions include better managing cash, receivables and inventory. In conclusion, ITI's working capital position is sound but there is scope for further improvement.

1. SUMMER TRAINING PROJECT REPORT
ON
“A Study on Working Capital Management at ITI
Limited”
Towards partial fulfillment of
Master of Business Administration (MBA)
(Affiliated to DR. A P J Abdul Kalam Technical University, Lucknow)
Company Guide: Faculty Guide:
Mr. Girja Shankar Dr. Shreyanshi Verma
(AM- EDC, ITI LTD.) (Assistant Professor)
BBD NITM, Lucknow
Submitted by:
Syed Anzar Ali
M.B.A. 3rd Semester
Roll No. 2100540700099
SESSION 2022-2023
DEPARTMENT OF MANAGEMENT
Babu Banarasi Das
National Institute of Technology & Management
Sector 1, Akhilesh Das nagar, Faizabad Road, Lucknow (U. P.), India

2. INTRODUCTION
 Working capital refers to the cash a business requires
for day-to-day operations, or more specifically, for
financing the conversion of raw material into finished
goods, which the company sells for payment. Among
the most important items of working capital are levels
of inventory, accounts receivable and accounts
payable. Analysts look at these items for sings of a
company’s efficiency and financial strength.

3. COMPANY PROFILE
 ITI Limited, earlier known as Indian Telephone
Industries Limited, is a central public sector
undertaking in India. It is under the ownership
of Department of Telecommunications, Ministry
of Communications, Government of India.

4. OBJECTIVES OF THE STUDY
 To analyze the working capital of ITI Limited.
 To determine the liquidity and profitability of
the company with the help of Ratio Analysis
 To suggest measures for improvement if
necessary in the management of Working
Capital.
 To analyze the financial performance of ITI
Limited.
 To identify the factors that influences the
working capital in ITI Limited.

5. RESEARCH METHODOLOGY
RESEARCH DESIGN
Descriptive research design is a type of research design that aims to obtain
information to systematically describe a phenomenon, situation, or population.
More specifically, it helps answer the what, when, where, and how questions
regarding the research problem, rather than the why.
Collection of Data
For carrying out the study of this particular topic the data have been collected
basically from Secondary sources. They are;
Secondary Sources:-
The secondary data have been collected from the available sources of the
company and external sources for the period under study. These include:-
Annual Reports of ITI Limited
Internet
Industry portals

6. LIMITATIONS OF THE STUDY
 As project has to be completed within a short span of
time, the scarcity of time was an important hindrance
and hence much information could not be gathered,
nor evaluated.
 Another important limitation is that analysis is very
much dependent on the company’s internal bulletin.
 There are no well – accepted standards or rules of
thumb for all ratios, which can be accepted as norms.
It renders interpretation of ratios difficult.

7. FINDINGS
 The first element analyzed was the level of net working capital.
The enterprises surveyed in 2019 to 2021 have positive
working capital. It is true that it is low, but in every company the
current assets are higher than short-term liabilities.
 Working capital is increasing in comparison to last year which is
good for the liquidity of the company. Current assets are
increased by 17.89% and current liabilities are decreased by
0.78% in 2021. This means that current assets are adequate to
meet its currents liabilities as there is decrease in current
liabilities. The current ratio of the company is 1.7. It shows that
company is having good liquidity position but they should try
to improve it.

8. SUGGESTIONS
 The management of working capital plays a vital role in running of a
successful business. So, things should go with a proper understanding for
managing cash, receivables and inventory.
 ITI Limited is managing its working capital in a good manner, but still there is
some scope for improvement in its management. This can help the company
in raising its profit level by making less investment in accounts receivables
and stocks etc. This will ultimately improve the efficiency of its operations.
Following are few recommendations given to the company in achieving its
desired objectives:
 The business runs successfully with adequate amount of the working capital
but the company should see to it that the cash should not be tied up in
excessive amount of working capital.

9. CONCLUSION
 The working capital position of the company is sound and the various
sources through which it is funded are optimal.
 The company has used its purchasing, financing and investment decisions to
good effect can be seen from the inferences made earlier in the project.
 The debts doubtful have been doubled over the years but their percentage
on the debts has almost become half. This implies a sales and collection
policy that get along with the receivables management of the firm.
 The various ratios calculated are an indicator as to the fact that the
profitability of the firm and sales are on a rise and also the deletion of the
inefficiencies in the working capital management.

10. THANK YOU