CONTENTS

FOREWORD 1

CHAPTER 1: THEORY OF WORKING CAPITAL AND ITS EFFECTIVE UTILIZATION IN ENTERPRISE 2

1.1. Theory of working capital 2

1.1.1. The notion of working capital 2

1.1.2.Working capital and the classification 3

1.1.3. Working capital’s structure and driving factors behind 4

1.1.4. Working capital resources 4

1.1.5.Working capital demand and the driving factors behind 5

1.2. Working capital and its importance in increasingly effective utilization. 6

1.2.1. Working capital and norms to reflect its cycle speed 6

1.2.2. The main factors have influences on the utilization effects of working capital 8

1.2.3. Some solutions aiming to increase the utilization effects of working capital 9

CHAPTER 2: THE REAL STATE OF WOKING CAPITAL MANAGEMENT AND UTILIZATION IN THE COMPANY 10

2.1. Overview of producing activities in Petrolimex Asphalt commercial limited company 10

2.1.1. Back ground and developing process 10

2.1.2. Business sectors and main products 10

2.1.3. Organization of management 11

2.1.4. Accounting’ s structure 11

2.2. The real state of working cappital’s utilization at Petrolimex Asphalt commercial limited company 14

2.2.1. Overview of assets and capital resources of the company 14

2.2.2. The real situation of working capital’s utilization at the company 16

2.2.3. In summary 26

CHAPTER 3: SOME SOLUTIONS TO INCREASING EFFECTIVE OF WORKING CAPITAL IN MANAGEMENT AND USTILIZATION AT PETROLIMEX ASPHALT COMMERCIAL LIMITED COMPANY 27

3.1. Advantages and challenges in operation of the company 27

3.1.1. Advantages 27

3.1.2. Challenges 27

3. 2. Oriented developing of the company in the coming years 27

3.3. Some primary sollutions to improve the effective utilization of working capital 28

3.3.1. Actively work out plans in mobilising and using working capital efficiently 29

3.3.2. Push up effectively the use of cash capital and specify clearly resonable reserves 30

3.3.4. To strengthen investment and enlarge market to push up goods consumption. 31

3.3.5. Investment satandar to workers and officials 32

3.3.6. Other solutions 33

CONCLUSIONS 34