Working Capital Management of Paper Mill in Pune City - Empirical Analysis

Yashodhan Prakash Mahajan

Abstract


The well-organized administration of working capital is very essential for an establishment. This is observed on the truth, having excessive working capital signify inefficiency, whereas too small cash at hand signify that the continued existence of business is insecure.

The thought of working capital management is all about the economic and monetary parts of credit, stock, selling, purchasing, saving  and investment policy. The larger the profit markup, the smaller will be the possible level of working capital attached  in creating and selling commodities. In accounting language, the difference between current assets and current liabilities is known as working capital. The important concern in the word "Current" is that it is probable be converted into cash, or possibly be paid from cash, within the stage of twelve calendar months. As a rule of thumb, an establishment desires to tie up small amount of money as much as feasible in working capital.  Nevertheless, there are always trade-offs.  One peculiar problem for business is running out of cash, which consequently leads to failure to make employees’ payrolls, or business might be unable to offer services due to absence of essential resources.[1]A well-planned and executed working capital management practices has a significant impact on firm’s profitability as well as to manage liquidity powers. The objective of this study is to analyze working capital adequacy and its effect on profitability; to explore the relationship between profitability and liquidity of company. This study aims to present empirical analysis about the effects of working capital management on overall profitability and liquidity of paper mill in Pune city.

[1]GehendraSubedi-  Working Capital Management of Nepal Telecom Published, on Aug 05, 2014

And MahaSagar Publications-Research Writing Company, Mumbai India at 05:31


Keywords


Working capital, ratios, finance

Full Text:

PDF

References


Working Capital Management Of Paper Mills by K. Madhavi International Journal of Research in Business Management (IMPACT: IJRBM) ISSN(E): 2321-886X; ISSN(P): 2347-4572 Vol. 2, Issue 3, Mar 2014, 63-72

Inter-Firm and Intra-Firm Efficiency Measures Journal of Productivity Analysis, 15, 185–199, 2001 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands.

The status of working capital and its relationship with sales: An empirical investigation of Andhra Pradesh Paper Mills Ltd (India)", by Aruna Panda, (2012), International Journal of Commerce and Management, Vol. 22 Issn: 1, pp.36 – 52.

Management of Working Capital, by ParagNalinDoshi 1/12/2009.

Authorized web sites of the Pudumjee Pulp & Paper Mills Limited. And Kay Pulp & Paper Mills Ltd.,

Published audit reports of the Pudumjee Pulp & Paper Mills Limited. And Kay Pulp & Paper Mills Ltd.,

Mukhopadhyay, D. (2004). “Working Capital Management in Heavy Engineering Firms- A Case Study”, the Management Accountant, I.C.W.A.I.

Khan, M.Y. and Jain, P.K. (2004). “Financial Management”, 2nd Edition, Tata McGraw Hill.

Rajeswara, Rao K. (1985):“Working Capital Planning and Control in Public Enterprises in India”, Ajanta Publications, Jaipur.

Chowdhury, A., & Amin, M. 2007. Working capital Management Practiced in Pharmaceutical Companies listed in Dhaka Stock Exchange. BRAC University Journal, 4(2), 75 -86.

Mehar, A. 2001. Impacts of Equity Financing on Liquidity Position of a Firm Applied Financial Economics, 15, 425-438.

Vishnani, S., & Shah, B. K. 2007. Impact of Working Capital Management Policies on Corporate Performance an Empirical Study. Global Business Review, 8(2), 267- 2816.13.

Anand, Manoj and Malhotra, Keshav (2007): Working Capital Performance of Corporate India – An Empirical Study”, ICFAI Journal of Applied Finance, Vol.13, No.1, January Issue, pp.46-81.Working Capital Management of Paper Mills 71

Pandey, I. M. and Parera, K.L.W. (1997): Determinants of Effective Working Capital.

Management – A Discriminate Analysis Approach”, IIMA Working Paper # 1349, Research and Publication Department, Indian Institute of Management, Ahmadabad, India.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.