Page 1 of 38

Research Paper on Working Capital Management

Continues for 37 more pages »
Read full document

Research Paper on Working Capital Management

Page 1 of 38
International Research Journal of Finance and Economics ISSN 1450-2887 Issue 46 (2010) © EuroJournals Publishing, Inc. 2010 http://www.eurojournals.com/finance.htm

Working Capital Management in Indian Tyre Industry
Jasmine Kaur Assistant Professor in Guru Arjan Dev Institute of Management & Technology, New Delhi E-mail: jasmine.rus@gmail.com Tel: (91) 9811160007; (91)9811669777; (91) (011) 25133012 Abstract The management of Working Capital is one of the most important and challenging aspect of the overall financial management. Merely more effective and efficient management of working capital can ensure survival of a business enterprise. Working Capital Management is concerned with the problems that arise in attempting to manage the Current Assets, Current Liabilities and the interrelation that exists between them. This is a two-dimensional study which examines the policy and practices of cash management, evaluate the principles, procedures and techniques of Investment Management, Receivable and Payable Management deals with analyzing the trend of working capital management and also to suggest an audit program to facilitate proper working capital management in Indian Tyre Industry. The study covers a production of 8 year viz, 1999-2007. For the purpose of investigation both primary and secondary data is used. The collected data is analyzed by applying research tool which include accounting tools like Analysis, Cash Flow Analysis, Common Size and Trend Analysis. They reveal that there is a stand off between liquidity and profitability and the selected corporate has been achieving a trade off between risk and return. Efficient management of working Capital and its components have a direct effect on the profitability levels of tyre industry. Keywords: Working Capital Management, Cash Management, Inventory Management, Receivables and Payables Management, Indian Tyre Industry.

Introduction
Working Capital Management refers to all management decisions and...