CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY

Size: px
Start display at page:

Download "CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY"

Transcription

1 CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY INTRODUCTION Working capital is the cash available for day to day functions of a business. It is the cash that can be used to foot expected and unplanned expenses. Good working capital management will secure a company s financial stature and help build its business. It is necessary for increasing earnings and makes it easier to get business loans and attract potential investors. The main aim of a working capital management plan is to balance current assets against liabilities. This helps companies maintain its planned expenses like salaries and short term financial obligations. If a company s current liabilities are more than its current assets, it signifies a negative working capital. Hiring a good accounts manager who knows various techniques will take care of working capital management in a business efficiently. In case of deficiency, the company can increase the working capital with proper management of outstanding incomes, its creditors and of the company s inventory or by getting a short term loan. The company s growth rate can be increased with cash by regulating its investment plans and by handling profit efficiently. It is important to having good working capital management in order to identify the right time to convert the company s current assets into cash. This is called the cash conversion period. A high working capital saves the company from dire 1

2 situations involving creditors, fixed assets cannot be sold in a short period of time. The ability to manage unforeseen expenses such as these creates good reputation in the market. Working capital management always ensures sufficient cash flow in a business. This allows companies to pay their liabilities without delay and more importantly protects them bankruptcy. With an efficient working management, companies have the advantage of a positive working capital which allows them to take on higher risks in business. Companies need to analyze their current assets and liabilities regularly in order to manage their working capital. A successful working capital management can face emergencies caused by market changes and competitor activities. Good cash flow is always an asset to a company s growth and success. NEED FOR THE STUDY The purpose of the present study is to analyze the various concepts of working capital and find out the feasibility of the concept of working capital in the light of better planning and control of working capital. Problems of working capital management involve the problem of determining the optimum level of investment in each component of current assets i.e. inventory, receivables, cash, and other short term investment. The basic focus in working capital management should be to optimize the firm's investment. An expert in the financial management is of the opinion that problem of 2

3 working capital is one of the factors responsible for the low profitability in manufacturing sector. Better planning and control of working capital, or in other words, proper utilization of optimum quantity of working capital increases the earning power subject to the existence of operating margin STATEMENT OF THE PROBLEM Efficient management of working capital is one of the pre-conditions for the success of an enterprise. Efficient management of working capital means management of various companies of working capital in such a way that an adequate amount of working capital is maintained for smooth running of a firm and for fulfillment of twin objectives of liquidity and profitability. While inadequate amount of working capital impairs the firm s liquidity, holding of excess working capital results in the reduction of the profitability. But the proper estimation of working capital various across firms over the periods depending upon the nature of business, scale of operation, production cycle, credit policy, availability of raw materials, etc. For this significant amount of funds is necessary to invest permanently in the form of various current assets. For instance, due to time lag between scale of goods and their actual realization in cash, adequate amount of working capital is always required to be made available for maintaining the desired level of sales. Empirical results show that inefficient management of working capital is one of the important factors causing industrial sickness. Modern financial 3

4 management aims at reducing the level of current assets without ignoring the risk of stock outs (Bhattacharya, 1991). Profit is the engine that drives the business enterprise. It is the unalterable permanent resource for the existence of enterprise and as such it is primary and final objective. Further it is indeed, a magic eye that mirrors all aspect of the entire business operations including the quality of output. To the management, profit are the test of efficiency and measure of control, to the owners, a measure of worth of their investment, to the creditors, the margin of safety, to the employees, a source of fringe benefit to the government, a measure of tax paying capacity, to the customer, a hint to demand price cuts, to an enterprise cumbersome source of finance for growth and existence and finally for the country, profit is an index of economic progress, national income generated and rise in the standard of living of the people. Therefore, a business enterprise can discharge its obligations to the various segments of the society only through profits. In a conventional production function approach for determination of relationship between output and profit, fixed capital is taken into account as explanatory variable among others; the role of working capital is ignored. It is therefore felt that there is the need to study the important role of working capital in profit generating process. If a company desires to take greater risk for bigger prfit, it reduces the size of working capital in relation to its sales. If it is interested in improving its liquidity, it increases the level of working capital. However, this policy is likely to result 4

5 in a reduction of sales therefore profitability. The profitability of the Cement companies in India is in a fluctuating state due to the change in the cost of production and negative influence of global recession.. To be specific, the increase input cost due to inflation factors, high level of taxation, high proportion of assets to sales, high proportion of various costs components to sales are responsible for low profitability. Besides, a high proportion of working capital to sales also affects the profitability of the firm. In the light of these circumstances, the following questions were probed in the present study. 1) Whether the profitability increases with operating performance variables such as Leverage, Liquidity, Size, Growth, Capital Intensity and Fixed Assets to Total Assets Ratio, Cash Conversion Cycle, and Profitability? 2) Whether the profitability increases with economic variable Inflation? SCOPE OF THE STUDY The present study is confined to the Working Capital Efficiency and Profitability Analysis of Selected Private Sector Cement Companies In India during the period between and The working capital efficiency of these companies have been analyzed in terms of Working Capital Efficiency Index, Utilization Index and Performance Index. The study also investigates the relationship between the working capital efficiency and profitability of the selected cement companies. 5

6 OBJECTIVES OF THE STUDY The main objectives of the study are as follows: 1. To analyze the Working Capital Management of the Selected Private Sector Cement Companies In India. 2. To examine the efficiency of Working Capital Management Practices of the selected firms in Cement Industry in India. 3. To analyze the Profitability of the selected Private Sector Cement Companies in India. 4. To examine the factors determining the Profitability of the selected Private Sector Cement Companies in India. HYPOTHESES Based on the questions cited earlier, the following hypotheses are framed and tested. 1. There is no significant relationship with Profitability and Working Capital Utilization Index. 2. There is no significant relationship with Profitability and Working Capital Performance Index, 3. There is no significant relationship with Profitability and Working Capital Efficiency Index 4. There is no significant relationship with Profitability and Cash Conversion Cycle. 6

7 5. There is no significant relationship between Liquidity and Profitability. 6. There is no significant relationship between Leverage and Profitability 7. There is no significant relationship between Size and Profitability 8. There is no significant relationship between profitability and Growth of the firm. 9. There is no significant relationship between Capital Intensity and Profitability. 10. There is no significant relationship between profitability and Fixed Assets Turnover Ratio. 11. There is no significant relationship between profitability and Inflation. 12. There is no significant relationship between profitability and Fixed Assets to Total Assets Ratio. METHODOLOGY The methodology adopted in the present study is as follows: Period of the Study The present study covers a period of 15 years starting from to Sample Selection Initially it was decided to keep in the sample of twenty large scale private sector cement companies listed in Bombay Stock Exchange (BSE) of India based on their total assets. However, on further scrutiny it was found 7

8 that only some companies have the continuous data for the period of 15 years from to while the others not. The inclusion of companies, which possess data for heterogeneous period of time undoubtedly will, distort the method of study. Hence they have been excluded. The companies which are having less than Rs.100 crores of total assets are also excluded. Based on the above criteria the sample finally holds only 10 companies belonging to private sector cement industry namely Associated Cement Companies Limited, Birla Cement Corporation Limited, Chettinad Cement Corporation Limited, Gujarat Shidhee Cement Limited, India Cement Limited, JK Lakshmi Cement Limited, KCP Cement Limited, Madras Cement Limited, Shree Cement Limited and Shri Vishnu Cement Limited have been considered as samples for the present study. Sources of Data The present study is based on the secondary data. The financial data used in this study has been mainly taken from the PROWESS, the corporate database software of Centre for Monitoring Indian Economy Pvt. Ltd., Mumbai. The Annual reports of individual companies, various issues of magazines and journals, working papers and official directory of Indian stock exchanges were referred extensively for the required data. Framework of Analysis The following tools were used for the analysis and interpretation of the data: Summary Statistics 8

9 Annual Compound Growth Rate (ACGR) Correlation Matrix and Correlation Analysis Multiple Regression Analysis Analysis of Variance (ANOVA) t test Summary Statistics Summary Statistics includes many preliminary statistical tools used to determine the measure of location and variations. In this study, Mean, Standard Deviation, Coefficient of Variation, Maximum, Minimum, Range, Skewness, Kurtosis were used to determine the average value of the different parameters and their variations based on 15 years data. Annual Compound Growth Rate Annual Compound Growth Rate is computed to analyze the growth pattern of the working capital and profitability of selected Private sector cement companies in India over a period of 15 years. Multiple Regression Analysis Regression analysis involves determination of the pattern of relationship and the closeness of the relationship between two or more variables. In this study it is used to asses the relationship between working capital management and profitability and to analyse the factors determining the profitability. 9

10 Correlation Matrix and Correlation Analysis Correlation Matrix is an array of correlation coefficient values arranged in a tabular form where row and column variables show the correlation of each variables with other variables in the array. The correlation analysis was carried out between the variables for the nine industries separately, mainly to determine the degree of inter-relationship and its significance. Analysis of Variance (ANOVA) The analysis of variance, one of the most important tools of statistical analysis, has been developed specially to test the significance of the difference between more than two sample means and to make inferences about whether the sample has been drawn from the populations having the same mean. The technique of Analysis of Variance is proposed to be applied for the analysis of Working Capital Efficiency and Profitability Analysis of selected private sector cement companies in India. T test T- test is based on t- distribution and is considered an appropriate test for judging the significance of a sample mean or for judging the significance of difference between the means of two samples It can also been used for judging the significance of the coefficients of simple and partial correlations. In the present study test statistic, t is used to judging the significance of the coefficients of correlations. 10

11 LIMITATIONS OF THE STUDY The limitations of the study are as follows: 1. This study is based on the published data of banks. Hence, the study carries all the limitations inherent in the secondary data. 2. The accounting and statistical tools used in this study have their own limitations. 3. The study had been designed, a priori, identifying certain variables. One cannot claim that all the important and relevant variables have necessarily been included. Further researchers may consider whether some more variables need to be included for analysis. 4. Another limitation of the study is confined to only 10 large scale private sector cement companies drawn from the 20 large scale companies listed out by the Bombay Stock Exchange (BSE) and may not stand for the cosmos in its unqualified stipulations. But all these limitations and constraints perhaps do not in any way; affect the worth of this research work. CHAPTER SCHEME In order to present this proposed study in a lucid way, it has been divided into eight chapters. The layout of these chapters is delineated below: The First Chapter gives an Introduction and Design of the Study which includes introduction, Need for the study, Statement of the problem, 11

12 Scope of the study and Objectives the study, hypotheses, research methodology, limitations and chapter scheme. The Second Chapter Review of Empirical Works is devoted exclusively to present the review of literature on Working Capital and Profitability The Third Chapter, Profile of Indian Cement Industry, presents the origin as well as the general performance of Indian cement industry and general profile of the sample units. The Fourth Chapter, Working Capital Analysis highlights the working capital policy of the sample companies. The Fifth Chapter Analysis of Working Capital Efficiency highlights the impact of working capital efficiency on profitability of the sample companies. The Sixth Chapter, Profitability Analysis examines the financial performance of the sample firms in terms of profitability. The Seventh Chapter Determinants of Profitability investigates the factors influencing the profitability using the regression techniques. The Eighth Chapter Conclusion and Suggestions dovetails the summary of findings and conclusion arrived at tin the previous chapters. Based on the findings a few suggestions are also made for the improvement of working capital efficiency and profitability of the selected private sector cement companies in India. 12

Study on the Working Capital Management Efficiency in Indian Leather Industry- An Empirical Analysis

Study on the Working Capital Management Efficiency in Indian Leather Industry- An Empirical Analysis Study on the Working Capital Management Efficiency in Indian Leather Industry- An Empirical Analysis Mr. N.Suresh Babu 1 Prof. G.V.Chalam 2 Research scholar Professor in Finance Dept. of Commerce and Business

More information

Management of Working Capital

Management of Working Capital International Journal of Computer Science & Management Studies, Vol. 13, Issue 03, May 2013 Management of Working Capital Arti Rani Assistant Professor Kanya Mahavidhyalya, Kharkhoda, Sonepat, Haryana

More information

WORKING CAPITAL MANAGEMENT AND PROFITABILITY: A CASE OF CEMTAC CEMENTS PVT LTD KASHMIR

WORKING CAPITAL MANAGEMENT AND PROFITABILITY: A CASE OF CEMTAC CEMENTS PVT LTD KASHMIR Inno Space (SJIF) Impact Factor : 4.618(Morocco) e-issn : 2347-9671, p- ISSN : 2349-0187 Vol - 3, Issue- 12, December 2015 ISI Impact Factor : 1.259 (Dubai, UAE) WORKING CAPITAL MANAGEMENT AND PROFITABILITY:

More information

WORKING CAPITAL MANAGEMENT

WORKING CAPITAL MANAGEMENT CHAPTER 9 WORKING CAPITAL MANAGEMENT Working capital is the long term fund required to run the day to day operations of the business. The company starts with cash. It buys raw materials, employs staff

More information

FINANCIAL MANAGEMENT (PART-7) WORKING CAPITAL MANAGEMENT PART 2

FINANCIAL MANAGEMENT (PART-7) WORKING CAPITAL MANAGEMENT PART 2 FINANCIAL MANAGEMENT (PART-7) WORKING CAPITAL MANAGEMENT PART 2 1. INTRODUCTION Dear Students, Welcome to the lecture series on financial management. Today in this lecture we shall cover the topic Working

More information

Financial analysis. Liquidity analysis Liquidity ratios are designed to measure a company's ability to cover its short term obligations.

Financial analysis. Liquidity analysis Liquidity ratios are designed to measure a company's ability to cover its short term obligations. Financial analysis Financial analysis is a service that allows evaluating company's liquidity, activity, capital structure and profitability indicators on the basis of information in the annual reports

More information

FINANCING OF WORKING CAPITAL LOAN AND ADVANCE MANAGEMENT

FINANCING OF WORKING CAPITAL LOAN AND ADVANCE MANAGEMENT KAAV INTERNATIONAL JOURNAL OF ECONOMICS,COMMERCE & BUSINESS MANAGEMENT FINANCING OF WORKING CAPITAL LOAN AND ADVANCE MANAGEMENT P. R. HALANI ASSISTANT PROFESSOR (M.COM, B.ED, M.PHIL. GSET, ) SHRI M. P.

More information

Measuring Efficiency and Performance of Selected Indian Steel Companies in the Context of Working Capital Management

Measuring Efficiency and Performance of Selected Indian Steel Companies in the Context of Working Capital Management Volume 6, Issue 11, May 2014 Measuring Efficiency and Performance of Selected Indian Steel Companies in the Context of Working Capital Management Dr. Monika Maheshwari Assistant Professor, Shri Vaishnav

More information

A STUDY ON THE PERFORMANCE ANALYSIS OF FACTORING SERVICES IN INDIA

A STUDY ON THE PERFORMANCE ANALYSIS OF FACTORING SERVICES IN INDIA A STUDY ON THE PERFORMANCE ANALYSIS OF FACTORING SERVICES IN INDIA Dr. K. N. KALAIVANI Dr. S. Gopalraju Government First Grade College, Anekal, Bangalore 562 106 E-Mail: drkalaivanikn9570@gmail.com ABSTRACT

More information

Working Capital Management Analysis: an Empirical study of leading Hotels in India

Working Capital Management Analysis: an Empirical study of leading Hotels in India Working Capital Management Analysis: an Empirical study of leading Hotels in India BASAVARAJESHWARI DIDDIMANI * Research Scholar, Department of Commerce, Mangalore university Mangalore Karnataka *Corresponding

More information

PRODUCTIVITY OF LIFE INSURANCE COMPANIES IN INDIA

PRODUCTIVITY OF LIFE INSURANCE COMPANIES IN INDIA CHAPTER V PRODUCTIVITY OF LIFE INSURANCE COMPANIES IN INDIA 5.1 INTRODUCTION An economic measured of output per unit of input. Inputs include labor and capital, while output is typically measured in revenues

More information

A STUDY ON WORKING CAPITAL MANAGEMENT OF TATA STEEL LTD (FROM 2008-09 TO 2012-13)

A STUDY ON WORKING CAPITAL MANAGEMENT OF TATA STEEL LTD (FROM 2008-09 TO 2012-13) International Journal of Advanced Research in A STUDY ON WORKING CAPITAL MANAGEMENT OF TATA STEEL LTD Jasmer Singh (FROM 2008-09 TO 2012-13) Abstract: Efficient management of Working Capital is very important

More information

Financial Ratios and Quality Indicators

Financial Ratios and Quality Indicators Financial Ratios and Quality Indicators From U.S. Small Business Administration Online Women's Business Center If you monitor the ratios on a regular basis you'll gain insight into how effectively you

More information

CHAPTER 27 PRINCIPLES OF WORKING CAPITAL MANAGEMENT

CHAPTER 27 PRINCIPLES OF WORKING CAPITAL MANAGEMENT CHAPTER 27 PRINCIPLES OF WORKING CAPITAL MANAGEMENT Q.1 Explain the concept of working capital. Are gross and net concepts of working capital exclusive? Discuss. A.1 Working capital signifies money required

More information

ABHINAV NATIONAL MONTHLY REFEREED JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT www.abhinavjournal.com

ABHINAV NATIONAL MONTHLY REFEREED JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT www.abhinavjournal.com A STUDY ON WORKING CAPITAL MANAGEMENT THROUGH RATIO ANALYSIS WITH REFERENCE TO KARNATAKA POWER CORPORATION LIMITED Srinivas K T Associate Professor, CIMS-B School, Jayanagar, Bangalore, india Email: srinikeelara@gmail.com

More information

Financial Management

Financial Management Different forms business organization Financial Management Sole proprietorship Partnership Cooperative society Company Private limited Vs Public limited company Private co min- two and max fifty, Pub Ltd

More information

Working Capital Management of Market Leaders

Working Capital Management of Market Leaders Volume 6, Issue 11, May 2014 Working Capital Management of Market Leaders Dr. Sumita J. Shroff Assistant Professor Department of Accounting and Financial Management, Faculty of Commerce The Maharaja Sayajirao

More information

IMPACT OF WORKING CAPITAL ON CORPORATE PERFORMANCE A CASE STUDY FROM CEMENT, CHEMICAL AND ENGINEERING SECTORS OF PAKISTAN

IMPACT OF WORKING CAPITAL ON CORPORATE PERFORMANCE A CASE STUDY FROM CEMENT, CHEMICAL AND ENGINEERING SECTORS OF PAKISTAN IMPACT OF WORKING CAPITAL ON CORPORATE PERFORMANCE A CASE STUDY FROM CEMENT, CHEMICAL AND ENGINEERING SECTORS OF PAKISTAN Naveed Ahmad Faculty of Management sciences, Indus international institute, D.

More information

Evaluation of Indian Construction Companies using Financial Tool

Evaluation of Indian Construction Companies using Financial Tool IJSTE - International Journal of Science Technology & Engineering Volume 1 Issue 11 May 2015 ISSN (online): 2349-784X Evaluation of Indian Construction Companies using Financial Tool Mr. Gaurav R. Desai

More information

MAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE

MAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE MAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE Revised -December 13, 2011 1 FINANCIAL ANALYSIS USING STRATEGIC PROFIT MODEL RATIOS Introduction Your policy course integrates

More information

ACCOUNTING RATIOS I. MODULE - 6A Analysis of Financial Statements. Accounting Ratios - I. Notes

ACCOUNTING RATIOS I. MODULE - 6A Analysis of Financial Statements. Accounting Ratios - I. Notes MODULE - 6A Accounting Ratios - I 8 ACCOUNTING RATIOS I In the previous lesson, you have learnt the relationship between various items of the financial statements. You have also learnt various tools of

More information

9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle

9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no

More information

CHAPTER 9. Ratio Analysis

CHAPTER 9. Ratio Analysis CHAPTER 9 Ratio Analysis Introduction The analysis of the financial statements and interpretations of financial results of a particular period of operations with the help of 'ratio' is termed as "ratio

More information

Working Capital Management Nature & Scope

Working Capital Management Nature & Scope Working Capital Management Nature & Scope Introduction & Definitions Components of Working Capital Significance of Working Capital Operating Cycle Types of Working Capital Net Vs Gross Working Capital

More information

Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:

Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used: Financial Ratios Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios

More information

The impact of Working Capital Management on Profitability of the Listed Firms in Sri Lanka S. A. Jude Leon

The impact of Working Capital Management on Profitability of the Listed Firms in Sri Lanka S. A. Jude Leon The impact of Working Capital Management on Profitability of the Listed Firms in Sri Lanka S. A. Jude Leon Officer, Union Bank of Colombo PLC, Sri Lanka. Abstract In this research the researcher attempt

More information

TRENDS IN LIQUIDITY MANAGEMENT AND THEIR IMPACT ON PROFITABILITY: A CASE STUDY. Kartik Chandra Nandi Banwarilal Bhalotia College, West Bengal

TRENDS IN LIQUIDITY MANAGEMENT AND THEIR IMPACT ON PROFITABILITY: A CASE STUDY. Kartik Chandra Nandi Banwarilal Bhalotia College, West Bengal Abstract: TRENDS IN LIQUIDITY MANAGEMENT AND THEIR IMPACT ON PROFITABILITY: A CASE STUDY Kartik Chandra Nandi Banwarilal Bhalotia College, West Bengal This paper makes an attempt to assess the trends in

More information

Managing Working Capital by Strategic Choice

Managing Working Capital by Strategic Choice Managing Working Capital by Strategic Choice Sampat P Singh Managing working capital effectively requires an understanding of the processes underlying the cash cycle. Managers project and evaluate working

More information

A STUDY ON WORKING CAPITAL MANAGEMENT OF PHARMACEUTICAL INDUSTRY IN INDIA

A STUDY ON WORKING CAPITAL MANAGEMENT OF PHARMACEUTICAL INDUSTRY IN INDIA 59 Journal of Management and Science ISSN: 2249-1260 e-issn: 2250-1819 Vol.5. No.3 September 2015 A STUDY ON WORKING CAPITAL MANAGEMENT OF PHARMACEUTICAL INDUSTRY IN INDIA Dr.V.Vijayalakshmi a and M.Srividya

More information

AN ANALYSIS OF WORKING CAPITAL MANAGEMENT EFFICIENCY IN TELECOMMUNICATION EQUIPMENT INDUSTRY

AN ANALYSIS OF WORKING CAPITAL MANAGEMENT EFFICIENCY IN TELECOMMUNICATION EQUIPMENT INDUSTRY RIVIER ACADEMIC JOURNAL, VOLUME 3, NUMBER 2, FALL 2007 AN ANALYSIS OF WORKING CAPITAL MANAGEMENT EFFICIENCY IN TELECOMMUNICATION EQUIPMENT INDUSTRY Vedavinayagam Ganesan * Graduate Student, EMBA Program,

More information

Change In the Working Capital Requirements: In the Textile Industry

Change In the Working Capital Requirements: In the Textile Industry Change In the Working Capital Requirements: In the Textile Industry RAMANJOT KAUR 1, Research Scholar School of management studies Punjabi University, Patiala Dr. KUSUM GUPTA 2 Assistant Professor D.A.V.

More information

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034 B.com. DEGREE EXAMINATION COMMERCE SIXTH SEMESTER NOVEMBER 2013 CO 6605 MANAGEMENT ACCOUNTING Date : 09/11/2013 Dept. No. Max. : 100 Marks Time : 1:00-4:00

More information

1 Define Management. Explain Mintzberg Managerial Roles. 12M

1 Define Management. Explain Mintzberg Managerial Roles. 12M Question Paper Code :GMB11T01 MANAGEMENT AND ORGANIZATIONAL BEHAVI0R 1 Define Management. Explain Mintzberg Managerial Roles. 2 Define Social Responsibility. Explain the Arguments for and against Social

More information

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability

More information

Planning & Financing of Working Capital

Planning & Financing of Working Capital Planning & Financing of Working Capital Objectives of Working Capital Elements of Working Capital Sources of Working Capital Working Capital Control and Banking Policy Tondon Committees Recommendations

More information

RATIO ANALYSIS FORMULAS + THEORIES

RATIO ANALYSIS FORMULAS + THEORIES A) Cash Position Ratio : - 1) Absolute Cash Ratio = Cash Reservoir Current Liabilities 2) Cash Position to Total asset Ratio = Cash Reservoir * 100 (Measure liquid layer of assets) Total Assets 3) Interval

More information

Financial Statement Ratio Analysis

Financial Statement Ratio Analysis Management Accounting 319 Financial Statement Ratio Analysis Financial statements as prepared by the accountant are documents containing much valuable information. Some of the information requires little

More information

Construction Economics & Finance. Module 6. Lecture-1

Construction Economics & Finance. Module 6. Lecture-1 Construction Economics & Finance Module 6 Lecture-1 Financial management: Financial management involves planning, allocation and control of financial resources of a company. Financial management is essential

More information

Chapter. Working capital

Chapter. Working capital Chapter 10 Working capital 1 10.1 Working capital Working capital is the capital available for conducting the day-to-day operations of the business and consists of current assets and current liabilities.

More information

The management of Working Capital is one of the

The management of Working Capital is one of the Negative Working Capital and its Impact on Profitability Amit Kumar Arora ACMA, UGC NET, MBA(Finance), M.Com., M.A.(Eco.) Assistant Professor, Department of Management Studies Krishna Institute of Engineering

More information

Chapter 002 Financial Statements, Taxes and Cash Flow

Chapter 002 Financial Statements, Taxes and Cash Flow Multiple Choice Questions 1. The financial statement summarizing the value of a firm's equity on a particular date is the: a. income statement. B. balance sheet. c. statement of cash flows. d. cash flow

More information

Working Capital Management and Firms Performance: An Analysis of Sri Lankan Manufacturing Companies

Working Capital Management and Firms Performance: An Analysis of Sri Lankan Manufacturing Companies Working Capital Management and Firms Performance: An Analysis of Sri Lankan Manufacturing Companies Lingesiya Y. Department of Financial Management, University of Jaffna, Sri Lanka lingesiya@yahoo.com

More information

Chapter-3 C FINANCIAL RATIO ANALYSIS. BSNL, India For Internal Circulation Only 1

Chapter-3 C FINANCIAL RATIO ANALYSIS. BSNL, India For Internal Circulation Only 1 Chapter-3 C FINANCIAL RATIO ANALYSIS BSNL, India For Internal Circulation Only 1 RATIO ANALYSIS FINANCIAL ANALYSIS is the process of identifying the financial strengths and weakness of the firm by properly

More information

Working Capital Concept & Animation

Working Capital Concept & Animation Working Capital Concept & Animation Meaning A measure of both a company's efficiency and its short-term financial health. The working capital is calculated as: Working Capital = Current Assets Current

More information

A Case Study on Critical Analysis of Tcs

A Case Study on Critical Analysis of Tcs IOSR Journal of Business and Management (IOSR-JBM) e-issn: 2278-487X, p-issn: 2319-7668. Volume 16, Issue 2. Ver. I (Feb. 2014), PP 75-80 A Case Study on Critical Analysis of Tcs Dr Pratibha Jain, Prof.

More information

Question Bank. B.Com III: Financial Management

Question Bank. B.Com III: Financial Management Question Bank B.Com III: Financial Management Unit 1 Introduction to Financial Management 1. What is Financial Management? 2. Explain the scope of Financial Management. 3. Explain the objectives of the

More information

Appendix. Selected Financial Ratios Useful in Analytical Procedures

Appendix. Selected Financial Ratios Useful in Analytical Procedures Selected Financial Ratios Useful in Analytical Procedures < Appendix D A number of financial ratios are used by auditors as analytical procedures. These ratios are broken down into four categories: short-term

More information

A STUDY ON ASSET AND LIABILITY MANAGEMENT IN ICICI BANK

A STUDY ON ASSET AND LIABILITY MANAGEMENT IN ICICI BANK A STUDY ON ASSET AND LIABILITY MANAGEMENT IN ICICI BANK Salvin Surjith FP* N. Sathyanarayana** Abstract: Assets and Liabilities Management (ALM) is a dynamic process of planning, organizing, coordinating

More information

Measuring BDC s impact on its clients

Measuring BDC s impact on its clients From BDC s Economic Research and Analysis Team July 213 INCLUDED IN THIS REPORT This report is based on a Statistics Canada analysis that assessed the impact of the Business Development Bank of Canada

More information

A STUDY ON MANAGEMENT OF WORKING CAPITAL IN SELECTED IT COMPANIES IN INDIA

A STUDY ON MANAGEMENT OF WORKING CAPITAL IN SELECTED IT COMPANIES IN INDIA A STUDY ON MANAGEMENT OF WORKING CAPITAL IN SELECTED IT COMPANIES IN INDIA Bhavesh Chadamiya 1 and Dr. Vijay Pithadia 2 1 Research Scholar of Karpagam University & Assistant Professor, OM VVIM college

More information

Working capital management of selected sugar industries in Tamil Nadu listed in BSE & NSE

Working capital management of selected sugar industries in Tamil Nadu listed in BSE & NSE 2015; 2(1): 192-196 IJMRD 2015; 2(1): 192-196 www.allsubjectjournal.com Received: 09-12-2014 Accepted: 25-12-2014 e-issn: 2349-4182 p-issn: 2349-5979 Impact factor: 3.762 M. Nagamani Associate Professor,

More information

Working Capital Management of Small Scale Industries in Rajasthan

Working Capital Management of Small Scale Industries in Rajasthan Working Capital Management of Small Scale Industries in Rajasthan Bashar Matarneh Department of Business Administration, Delmon University Exhibition Avenue Manama, Kingdom of Bahrain, P.O. Box 2469 Tell:

More information

www.engineerspress.com The Study of Factors Affecting Working Capital of Pharmaceutical Companies Accepted in Tehran Stock Exchange

www.engineerspress.com The Study of Factors Affecting Working Capital of Pharmaceutical Companies Accepted in Tehran Stock Exchange www.engineerspress.com ISSN: 2307-3071 Year: 2013 Volume: 01 Issue: 14 Pages: 66-77 The Study of Factors Affecting Working Capital of Pharmaceutical Companies Accepted in Tehran Stock Exchange ABSTRACT

More information

Analysis of Financial Statement of Hindustan Petroleum Corporation Ltd.

Analysis of Financial Statement of Hindustan Petroleum Corporation Ltd. EUROPEAN ACADEMIC RESEARCH Vol. II, Issue 8/ November 2014 ISSN 2286-4822 www.euacademic.org Impact Factor: 3.1 (UIF) DRJI Value: 5.9 (B+) Analysis of Financial Statement of Hindustan Petroleum Corporation

More information

IJMIE Volume 2, Issue 6 ISSN: 2249-0558

IJMIE Volume 2, Issue 6 ISSN: 2249-0558 A Study on Liquidity, Profitability and Working Capital Management of Co- Operative Dudh Sangh Prof. R.G.Sathe* Abstract: Working capital management involves the management and control of the gross current

More information

M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368. * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV)

M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368. * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV) Model Answer/suggested solution Business Finance M. Com (1st Semester) Examination, 2013 Paper Code: AS-2368 * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV) Note: These

More information

Liquidity analysis: Length of cash cycle

Liquidity analysis: Length of cash cycle 2. Liquidity analysis: Length of cash cycle Operating cycle of a merchandising firm: number of days it takes to sell inventory + number of days until the resulting receivables are converted to cash Acquisition

More information

3 Financial Analysis and Planning

3 Financial Analysis and Planning 3 Financial Analysis and Planning BASIC CONCEPTS AND FORMULAE 1. Financial Analysis and Planning Financial Analysis and Planning is carried out for the purpose of obtaining material and relevant information

More information

Audit Planning and Analytical Procedures

Audit Planning and Analytical Procedures Audit Planning and Analytical Procedures Chapter 8 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 8-1 Learning Objective 1 Discuss why adequate audit planning is essential.

More information

An Analysis Of Working Capital Management Of Nahar Spinning Mills Ltd.

An Analysis Of Working Capital Management Of Nahar Spinning Mills Ltd. An Analysis Of Working Capital Management Of Nahar Spinning Mills Ltd. Mamta Patidar Patidar_mamta@yahoo.co.in Department of Commerce Chitansh A.D.P.G. College E-7 Arera Colony Bhopal ABSTRACT : This study

More information

Negative Working Capital Can be a Positive Sign for The Success A Case Study of TVS Motor Company

Negative Working Capital Can be a Positive Sign for The Success A Case Study of TVS Motor Company International Journal of Management, MIT College of Management, Vol. 2, No. 2, August 2014, pp. 63 69 63 Negative Working Capital Can be a Positive Sign for The Success A Case Study of TVS Motor Company

More information

Impact of Working Capital Management on Profitability: Evidence From Listed Companies in Sri Lanka T.A.N.R. Jayarathne

Impact of Working Capital Management on Profitability: Evidence From Listed Companies in Sri Lanka T.A.N.R. Jayarathne Reshaping Management and Economic Thinking through Integrating Eco-Friendly and Ethical Practices Proceedings of the 3 rd International Conference on Management and Economics 26-27 February 2014 Faculty

More information

Financial Statements and Ratios: Notes

Financial Statements and Ratios: Notes Financial Statements and Ratios: Notes 1. Uses of the income statement for evaluation Investors use the income statement to help judge their return on investment and creditors (lenders) use it to help

More information

WORKING CAPITAL MANAGEMENT OF MAKSON HEALTHCARE PVT LTD: A TRADE -OFF BETWEEN LIQUIDITY AND PROFITABILITY, AN EMPIRICAL STUDY

WORKING CAPITAL MANAGEMENT OF MAKSON HEALTHCARE PVT LTD: A TRADE -OFF BETWEEN LIQUIDITY AND PROFITABILITY, AN EMPIRICAL STUDY WORKING CAPITAL MANAGEMENT OF MAKSON HEALTHCARE PVT LTD: A TRADE -OFF BETWEEN LIQUIDITY AND PROFITABILITY, AN EMPIRICAL STUDY Ms. Ankita Rajdev, Assistant Professor, Faculty of Management, JSSGIW, Barkatullah

More information

CHAPTER 13. Financial Analysis: The Big Picture

CHAPTER 13. Financial Analysis: The Big Picture CHAPTER 13 Financial Analysis: The Big Picture Discuss the Need for comparative analysis and identify the tools of financial statement analysis Throughout the book we will rely on three types of comparisons

More information

HEALTHCARE FINANCE: AN INTRODUCTION TO ACCOUNTING AND FINANCIAL MANAGEMENT. Online Appendix A Financial Ratios

HEALTHCARE FINANCE: AN INTRODUCTION TO ACCOUNTING AND FINANCIAL MANAGEMENT. Online Appendix A Financial Ratios HEALTHCARE FINANCE: AN INTRODUCTION TO ACCOUNTING AND FINANCIAL MANAGEMENT Online Appendix A Financial Ratios INTRODUCTION In Chapter 17, we indicated that ratio analysis is a technique commonly used to

More information

Working Capital Management and Profitability: A Study on Textiles Industry

Working Capital Management and Profitability: A Study on Textiles Industry ASA University Review, Vol. 5 No. 1, January June, 2011 Working Capital Management and Profitability: A Study on Textiles Mohammad Morshedur Rahman * Abstract Textiles plays a vital role in the socio-economic

More information

FINANCIAL ANALYSIS GUIDE

FINANCIAL ANALYSIS GUIDE MAN 4720 POLICY ANALYSIS AND FORMULATION FINANCIAL ANALYSIS GUIDE Revised -August 22, 2010 FINANCIAL ANALYSIS USING STRATEGIC PROFIT MODEL RATIOS Introduction Your policy course integrates information

More information

A STUDY ON EFFECTIVENESS OF COST OF CAPITAL ONBHARATPETROLEUM CORPORATION LIMITED (BPCL) SHENBAGAM KANNAPPAN*

A STUDY ON EFFECTIVENESS OF COST OF CAPITAL ONBHARATPETROLEUM CORPORATION LIMITED (BPCL) SHENBAGAM KANNAPPAN* A STUDY ON EFFECTIVENESS OF COST OF CAPITAL ONBHARATPETROLEUM CORPON LIMITED (BPCL) SHENBAGAM KANNAPPAN* **Research scholar BHARATHIAR UNIVERSITY COIMBATORE ANAND SHANKAR RAJA. M ** **Research scholar

More information

FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management?

FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management? FINANCIAL MANAGEMENT For M.Com /B.Com Part A Question & Answers INTRODUCTION TO FINANCIAL MANAGEMENT 1. What is financial management? It is the application of planning and control functions of the finance

More information

Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed At Karachi Stock Exchange

Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed At Karachi Stock Exchange IOSR Journal of Business and Management (IOSR-JBM) e-issn: 2278-487X, p-issn: 2319-7668. Volume 11, Issue 2 (May. - Jun. 2013), PP 52-57 Influence of Working Capital Management and Liquidity on Financial

More information

Working Capital Management: An Essential Tool of Business Finance - A Case Study of National Plastic Industries Limited (NPIL)

Working Capital Management: An Essential Tool of Business Finance - A Case Study of National Plastic Industries Limited (NPIL) IOSR Journal of Business and Management (IOSR-JBM) e-issn: 2278-487X, p-issn: 2319-7668. Volume 12, Issue 2 (Jul. - Aug. 2013), PP 01-07 Working Capital Management: An Essential Tool of Business Finance

More information

www.pvpglobal.com SECTOR: REALTY REPORTING DATE: 31 ST MAY, 2016 PVP Ventures Ltd

www.pvpglobal.com SECTOR: REALTY REPORTING DATE: 31 ST MAY, 2016 PVP Ventures Ltd 31 st May, 2016 TABLE 1 MARKET DATA (STANDALONE) (As on 31 st May, 2016) NSE Code PVP NSE Market Price ( ) 4.50 NSE Market Cap. ( Cr.) 118.85 Sector Realty Face Value ( ) 10.00 Equity ( Cr.) 245.05 52

More information

Chapter- 3B Statement of Changes in Financial Position and Working Capital (Fund

Chapter- 3B Statement of Changes in Financial Position and Working Capital (Fund Chapter- 3B Statement of Changes in Financial Position and Working Capital (Fund BSNL, India For Internal Circulation Only 1 Statement of Changes in Financial Position and Working Capital (Fund) I. Statement

More information

STATE BANK OF INDIA BRANCH. Interview Form For Loans above Rs.25,000/- (To be submitted to the Sanctioning Authority along with the Application Form)

STATE BANK OF INDIA BRANCH. Interview Form For Loans above Rs.25,000/- (To be submitted to the Sanctioning Authority along with the Application Form) Annexure-SBF/3 STATE BANK OF INDIA BRANCH SMALL BUSINESS FINANCE Interview Form For Loans above 25,000/- (To be submitted to the Sanctioning Authority along with the Application Form) To be used for :

More information

WORKING CAPITAL MANAGEMENT OF BAJAJ AUTO LTD. WITH SPECIAL REFERENCE TO AUTOMOBILE INDUSTRY.

WORKING CAPITAL MANAGEMENT OF BAJAJ AUTO LTD. WITH SPECIAL REFERENCE TO AUTOMOBILE INDUSTRY. International Journal of Entrepreneurship and Management Research Vol. 1 No. 1 (January-June 2011) pp. 63-71 WORKING CAPITAL MANAGEMENT OF BAJAJ AUTO LTD. WITH SPECIAL REFERENCE TO AUTOMOBILE INDUSTRY.

More information

FUNDAMENTALS OF HEALTHCARE FINANCE. Online Appendix B Financial Analysis Ratios

FUNDAMENTALS OF HEALTHCARE FINANCE. Online Appendix B Financial Analysis Ratios 3/27/09 FUNDAMENTALS OF HEALTHCARE FINANCE Online Appendix B Financial Analysis Ratios Introduction In Chapter 13 of Fundamentals of Healthcare Finance, we indicated that financial ratio analysis is a

More information

APPRAISAL OF WORKING CAPITAL OF A PUBLIC SECTOR UNDERTAKING -A CASE STUDY OF MADHYA PRADESH STATE AGRO INDUSTRIES DEVELOPMENT CORPORATION LIMITED

APPRAISAL OF WORKING CAPITAL OF A PUBLIC SECTOR UNDERTAKING -A CASE STUDY OF MADHYA PRADESH STATE AGRO INDUSTRIES DEVELOPMENT CORPORATION LIMITED APPRAISAL OF WORKING CAPITAL OF A PUBLIC SECTOR UNDERTAKING -A CASE STUDY OF MADHYA PRADESH STATE AGRO INDUSTRIES DEVELOPMENT CORPORATION LIMITED ISSN 2277-5846 ISSN 2277 5846I Dr. Santosh Gupta Professor,

More information

Effects of Working Capital Management and Liquidity: Evidence from the Cement Industry of Bangladesh

Effects of Working Capital Management and Liquidity: Evidence from the Cement Industry of Bangladesh Volume VI, Number-01, January-June, 2011 Effects of Working Capital Management and Liquidity: Evidence from the Cement Industry of Bangladesh SAYEDA TAHMINA QUAYYUM * ABSTRACT This paper is an attempt

More information

SYLLABUS. MBA - IInd YEAR FINANCE

SYLLABUS. MBA - IInd YEAR FINANCE SYLLABUS MBA - IInd YEAR FINANCE Syllabus for M.B.A. (Finance) Paper - I Paper - II Paper - III Paper - IV Security Analysis and Investment Management. Corporate Taxation. Working Capital Management. Infrastructure

More information

FINANCIAL ANALYSIS CS. Sample Reports. version 2008.x.x

FINANCIAL ANALYSIS CS. Sample Reports. version 2008.x.x FINANCIAL ANALYSIS CS Sample Reports version 2008.x.x TL 19887 (10/14/2008) Copyright Information Text copyright 2004-2008 by Thomson Reuters/Tax & Accounting. All rights reserved. Video display images

More information

CHAPTER 6. P.6.17 The following are the ratios relating to the activities of National Traders Ltd:

CHAPTER 6. P.6.17 The following are the ratios relating to the activities of National Traders Ltd: CHAPTER 6 Solved Problems P.6.17 The following are the ratios relating to the activities of National Traders Ltd: Debtors velocity (months) 3 Stock velocity (months) 8 Creditors velocity (months) 2 Gross

More information

FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT STUDY MATERIAL:- FINANCIAL MANAGEMENT VERY SHORT QUESTIONS ( 1 MARK) 1 Define Financial Management. Ans financial management is that specialized activity which is responsible for obtaining and affectively

More information

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability

More information

12. FINANCIAL MANAGEMENT

12. FINANCIAL MANAGEMENT 12. FINANCIAL MANAGEMENT Financing the business The capital of a business consists of those funds used to start and run the business. Capital may be of two types: fixed and working. Fixed capital refers

More information

IMPACT OF RECEIVABLES MANAGEMENT ON WORKING CAPITAL AND PROFITABILITY: A STUDY ON SELECT CEMENT COMPANIES IN INDIA

IMPACT OF RECEIVABLES MANAGEMENT ON WORKING CAPITAL AND PROFITABILITY: A STUDY ON SELECT CEMENT COMPANIES IN INDIA IMPACT OF RECEIVABLES MANAGEMENT ON WORKING CAPITAL AND PROFITABILITY: A STUDY ON SELECT CEMENT COMPANIES IN INDIA N. VENKATA RAMANA*; K. RAMAKRISHNAIAH**; P. CHENGALRAYULU*** *ASSOCIATE PROFESSOR DEPARTMENT

More information

Discussion Board Articles Ratio Analysis

Discussion Board Articles Ratio Analysis Excellence in Financial Management Discussion Board Articles Ratio Analysis Written by: Matt H. Evans, CPA, CMA, CFM All articles can be viewed on the internet at www.exinfm.com/board Ratio Analysis Cash

More information

Credit Analysis 10-1

Credit Analysis 10-1 Credit Analysis 10-1 10-2 Liquidity and Working Capital Basics Liquidity - Ability to convert assets into cash or to obtain cash to meet short-term obligations. Short-term - Conventionally viewed as a

More information

The Nature, Elements and Importance of Working Capital

The Nature, Elements and Importance of Working Capital C. WORKING CAPITAL MANAGEMENT 1. The nature, elements and importance of working capital 2. Management of inventories, accounts receivable, accounts payable and cash 3. Determining working capital needs

More information

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

More information

IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY

IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY Hina Agha, Mba, Mphil Bahria University Karachi Campus, Pakistan Abstract The main purpose of this study is to empirically test the impact of working

More information

FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS

FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS SYLLABUS Compulsory part Basic ratio analysis 1. State the general functions of accounting ratios. 2. Calculate and interpret the following ratios: a. working capital/current ratio, quick/liquid/acid test

More information

8.1 Summary and conclusions 8.2 Implications

8.1 Summary and conclusions 8.2 Implications Conclusion and Implication V{tÑàxÜ CONCLUSION AND IMPLICATION 8 Contents 8.1 Summary and conclusions 8.2 Implications Having done the selection of macroeconomic variables, forecasting the series and construction

More information

Preparing a Successful Financial Plan

Preparing a Successful Financial Plan Topic 9 Preparing a Successful Financial Plan LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Describe the overview of accounting methods; 2. Prepare the three major financial statements

More information

2. Financial management:

2. Financial management: 2. Financial management: Meaning, scope and role, a brief study of functional areas of financial management. Introduction to various FM tools: ratio analysis, fund flow statement, cash flow statement.

More information

A STUDY ON ASSET MANAGEMENT OF SELECTED AUTOMOBILE COMPANIES IN INDIA

A STUDY ON ASSET MANAGEMENT OF SELECTED AUTOMOBILE COMPANIES IN INDIA 51 A STUDY ON ASSET MANAGEMENT OF SELECTED AUTOMOBILE COMPANIES IN INDIA ABSTRACT DR.M. DHANABHAKYAM*; S.KAVITHA** *Assistant Professor, Department of Commerce, Bharathiar University, Coimbatore - 46.

More information

SAMPLE CASE STUDIES FINANCE. M/s Vithal Enterprises

SAMPLE CASE STUDIES FINANCE. M/s Vithal Enterprises SAMPLE CASE STUDIES FINANCE 1) Introduction: Case Study 1 M/s Vithal Enterprises Shri Vishal Shantilal Hajeri is the Sole Proprietor of M/s Vithal Enterprises. Mr.Hajeri has passed BE Electronics from

More information

Working Capital Structure and Liquidity Analysis: An Empirical Research on Andhra Pradesh Pharmaceutical Industry. Abstract

Working Capital Structure and Liquidity Analysis: An Empirical Research on Andhra Pradesh Pharmaceutical Industry. Abstract Working Capital Structure and Liquidity Analysis: An Empirical Research on Andhra Pradesh Pharmaceutical Industry P. Lakshmi Narasa Reddy Asst Professor, Sree Vidyaniketan Institute of Management, Rangampet,

More information

Ratios from the Statement of Financial Position

Ratios from the Statement of Financial Position For The Year Ended 31 March 2007 Ratios from the Statement of Financial Position Profitability Ratios Return on Sales Ratio (%) This is the difference between what a business takes in and what it spends

More information

Preparing Agricultural Financial Statements

Preparing Agricultural Financial Statements Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural environment. Accurate records

More information