Paper and level of working capital. Research Methodology :Average

Paper1: Working capital managementefficiency and firm profitability: A study of indian retail industryIntroduction:TheIndian sector is one of the most susceptible sectors of the Indian Economy.Nonetheless, this sector is very promising and profit making. The hyper-marketsector in India showed an approximate growth of 314.1% and touched roughly INR452.6 in 2015, according to BMI. Annual growth of Indian retail sector wasexpected to reach 25%. Worth of modern retail in India was around $200 billion2016.

In the context of financial upheaval, efficient working capital is ofvital importance. This study focuses on the Indian Retail and its efficiency ofworking capital.Objective:·        To assess the multiple factors ofworking capital ·        To optimise the usage of current assets ·        To examine the liquidity graph, cashmanagement being the primary focus ·        To analyse the correlation between salesand level of working capital.ResearchMethodology :Averagesales of five large scale companies in the concerned sector were chosen on thebasis of past three year’s sales data (secondary data). Tools and techniquesapplied-ratio analysis, time series graphs, regression analysis.

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Result: Overthe last three years the working capital for Shoppers Stop (one of companiesselected) has been consistently negative. This show a policy of financingoperations via interest free short-term liabilities.Working capital per squarefeet has been reduces through effective inventory management and by procuring alarger segment of goods on consignment basis.Even though Cash balance is not aconcern, keeping a buffer for a company like Shopper’s Stop isrecommended.

There is no change observed in sundry debtors. On the other hand,due to rigorous store expansion, accrued income, lease rent and receivables hasescalated.Conclusion:Thecompanies that handle their net working capital efficiently are the mostoptimum.There has been a reduction in net working capital cycle due tocompetent management of working capital.Paper2:  Working CapitalManagement Efficiency in Indian LeatherIntroduction:Todevelop value for shareholder, as a result of time delay between expenditure onprocurement of raw material and returns from sale of finished goods, effectivemanagement of working capital plays a vital role.Objective:Toestablish a relationship between Inventory Conversion Period (ICP), AverageCollection Period (ACP), Average Payment Period (APP), Cash Conversion Cycle(CCC) and profitability of the firm.Researchmethodology:Pertinent magazines, journals andworking papers were used as secondary source.

Correlation aand multipleregression analysis, analysis of variance and summary statistics were put touseResults:Apositive and irrelevant correlation between inventory conversion period andprofitability. A significant relationship between leverage and averagecollection period is observed. Conclusion:Bylimiting the days accounts receivable  ,value creation is attempted by managers for shareholders.Reasonable maximumshould be attained in inventories and account payment period must alsoincrease.Paper3: Working Capital and CreditNeeds of Foodgrains Distribution in IndiaIntroduction:Thisstudy pertains to the years 1970-1973. The selective credit control policies ofthe Reserve Bank of India are framed with a view to making it more difficult toobtain credit against a hypothecation of food grains.

Objectives:Estimationof working capital needed to procure and distribute food grains (wheat rice andcoarse grains) and valuate the need of marketed surplus. ResearchMethodology: a)Wheat: The pattern was formed on thebasis of a study on the monthly average of wheat in the markets b) Rice :For 2quarterly months, a normal distribution was presumed. And rest, a uniformdistribution. (c) Other food grains: a continuous distribution pattern wasadopted.Results:Twosituations were assumed for working capital model.The opening stock of everymonth will cater to the demand of 2 months. The stock remaining after thepurchases and sale made in this period and the opening stock of the subsequentmonths will be the stock as on date. The other period being of 3 months.

15% ofthe total bank advances was the maximum credit available, beyond which they hadto rely on non banking sources.Conclusion:By providing adequate credit to food grains business it is possible to bringbetter discipline and control on the stocks and the tendency to hoard can becurbed. It will also decrease the cost of financing. Due to mismanagement inthe assessment of working capital the bank credit cannot be heldresponsible.  The bank credit only met38% of working capital required during 1972-73. The cost of financing soared due to dependency on non banking sourceswhich also led to inflation in food grains.Paper4: The impact of workingcapital management toward profitability on food and beverage companies listedin indonesia stock exchange.( ISE) Introduction:12food and beverage companies listed under ISE during 2010-14 are the sample forthis study.

Return On Asset(ROA) is used to analyse efficiency andprofitability in operational activities involving the assets. Objective:Working capital turnover and cash conversion cycleare studied thoroughly keeping in mind the incidence of working capitalmanagement on profit of a company.ResearchMethodology :It has a quantitative approach whichuses secondary data, panel data regression and statistical analysis techniqueswere used. f test and t test were applied.

Results:  F test-Variables such as working capitalturnover and cash conversion cycle impacted ROA significantly. Conclusions:Theprofit recorded using ROA was affected the most by working capital turnover andcash conversion cycle. Working capital and cash conversion cycle contributes69.

63% of ROA turnover and the remaining 30.37% is contributed by othervariables.Paper5: Working capital managementof fertilizer companies of India Introduction:Workingcapital has a crucial role for determining liquidity position. For the purposeof this study, Chambal Fertilizers and Chemicals Ltd. (CFCL), NagarjunaFertilizers and Chemicals Ltd. (NFCL), National Fertilizers Ltd.

(NFL),Rashtriya Chemicals and Fertilizers Ltd. (RCFL) were chosen.Objectives:1. To assess management of working capital offertilizer companies and analyse the effectiveness on liquidity.2.

Analyse the correlation between liquidity andprofitability via rank correlation.Researchmethodology: Information was accessed from www.moneycontrol.comusing the annual reports.To examine the significance of rank correlation t testand spearmans rank correlation was used.Result:  RCFL- current assetswere less than current liabilities as the working capital declines from 2007and becomes negative in 2010. In NFL, fluctuations were observed. In NFCL  a continuous negative trend was prevelant.

InCFCL-a mixed behaviour can be seen. Crucial ratios related to the companieswere calculated.Conclusion: Profitability decreases when there is an increase inthe liquidity of a company.Current ratio, quick ratio and working capitalturnover ratio when good implies that current payments can be made easily.Agood Debtor Turnover Ratio reflects fast repayment from debtors.Paper1: Working capital managementefficiency and firm profitability: A study of indian retail industryIntroduction:TheIndian sector is one of the most susceptible sectors of the Indian Economy.

Nonetheless, this sector is very promising and profit making. The hyper-marketsector in India showed an approximate growth of 314.1% and touched roughly INR452.6 in 2015, according to BMI. Annual growth of Indian retail sector wasexpected to reach 25%. Worth of modern retail in India was around $200 billion2016. In the context of financial upheaval, efficient working capital is ofvital importance. This study focuses on the Indian Retail and its efficiency ofworking capital.

Objective:·        To assess the multiple factors ofworking capital ·        To optimise the usage of current assets ·        To examine the liquidity graph, cashmanagement being the primary focus ·        To analyse the correlation between salesand level of working capital.ResearchMethodology :Averagesales of five large scale companies in the concerned sector were chosen on thebasis of past three year’s sales data (secondary data). Tools and techniquesapplied-ratio analysis, time series graphs, regression analysis.Result: Overthe last three years the working capital for Shoppers Stop (one of companiesselected) has been consistently negative. This show a policy of financingoperations via interest free short-term liabilities.Working capital per squarefeet has been reduces through effective inventory management and by procuring alarger segment of goods on consignment basis.

Even though Cash balance is not aconcern, keeping a buffer for a company like Shopper’s Stop isrecommended.There is no change observed in sundry debtors. On the other hand,due to rigorous store expansion, accrued income, lease rent and receivables hasescalated.Conclusion:Thecompanies that handle their net working capital efficiently are the mostoptimum.There has been a reduction in net working capital cycle due tocompetent management of working capital.Paper2:  Working CapitalManagement Efficiency in Indian LeatherIntroduction:Todevelop value for shareholder, as a result of time delay between expenditure onprocurement of raw material and returns from sale of finished goods, effectivemanagement of working capital plays a vital role.Objective:Toestablish a relationship between Inventory Conversion Period (ICP), AverageCollection Period (ACP), Average Payment Period (APP), Cash Conversion Cycle(CCC) and profitability of the firm.

Researchmethodology:Pertinent magazines, journals andworking papers were used as secondary source. Correlation aand multipleregression analysis, analysis of variance and summary statistics were put touseResults:Apositive and irrelevant correlation between inventory conversion period andprofitability. A significant relationship between leverage and averagecollection period is observed.

Conclusion:Bylimiting the days accounts receivable  ,value creation is attempted by managers for shareholders.Reasonable maximumshould be attained in inventories and account payment period must alsoincrease.Paper3: Working Capital and CreditNeeds of Foodgrains Distribution in IndiaIntroduction:Thisstudy pertains to the years 1970-1973.

The selective credit control policies ofthe Reserve Bank of India are framed with a view to making it more difficult toobtain credit against a hypothecation of food grains.Objectives:Estimationof working capital needed to procure and distribute food grains (wheat rice andcoarse grains) and valuate the need of marketed surplus. ResearchMethodology: a)Wheat: The pattern was formed on thebasis of a study on the monthly average of wheat in the markets b) Rice :For 2quarterly months, a normal distribution was presumed. And rest, a uniformdistribution. (c) Other food grains: a continuous distribution pattern wasadopted.Results:Twosituations were assumed for working capital model.The opening stock of everymonth will cater to the demand of 2 months. The stock remaining after thepurchases and sale made in this period and the opening stock of the subsequentmonths will be the stock as on date.

The other period being of 3 months.15% ofthe total bank advances was the maximum credit available, beyond which they hadto rely on non banking sources.Conclusion:By providing adequate credit to food grains business it is possible to bringbetter discipline and control on the stocks and the tendency to hoard can becurbed.

It will also decrease the cost of financing. Due to mismanagement inthe assessment of working capital the bank credit cannot be heldresponsible.  The bank credit only met38% of working capital required during 1972-73. The cost of financing soared due to dependency on non banking sourceswhich also led to inflation in food grains.Paper4: The impact of workingcapital management toward profitability on food and beverage companies listedin indonesia stock exchange.( ISE) Introduction:12food and beverage companies listed under ISE during 2010-14 are the sample forthis study. Return On Asset(ROA) is used to analyse efficiency andprofitability in operational activities involving the assets. Objective:Working capital turnover and cash conversion cycleare studied thoroughly keeping in mind the incidence of working capitalmanagement on profit of a company.

ResearchMethodology :It has a quantitative approach whichuses secondary data, panel data regression and statistical analysis techniqueswere used. f test and t test were applied.Results:  F test-Variables such as working capitalturnover and cash conversion cycle impacted ROA significantly. Conclusions:Theprofit recorded using ROA was affected the most by working capital turnover andcash conversion cycle. Working capital and cash conversion cycle contributes69.63% of ROA turnover and the remaining 30.37% is contributed by othervariables.

Paper5: Working capital managementof fertilizer companies of India Introduction:Workingcapital has a crucial role for determining liquidity position. For the purposeof this study, Chambal Fertilizers and Chemicals Ltd. (CFCL), NagarjunaFertilizers and Chemicals Ltd. (NFCL), National Fertilizers Ltd.

(NFL),Rashtriya Chemicals and Fertilizers Ltd. (RCFL) were chosen.Objectives:1.

To assess management of working capital offertilizer companies and analyse the effectiveness on liquidity.2. Analyse the correlation between liquidity andprofitability via rank correlation.Researchmethodology: Information was accessed from www.moneycontrol.comusing the annual reports.To examine the significance of rank correlation t testand spearmans rank correlation was used.

Result:  RCFL- current assetswere less than current liabilities as the working capital declines from 2007and becomes negative in 2010. In NFL, fluctuations were observed. In NFCL  a continuous negative trend was prevelant. InCFCL-a mixed behaviour can be seen. Crucial ratios related to the companieswere calculated.

Conclusion: Profitability decreases when there is an increase inthe liquidity of a company.Current ratio, quick ratio and working capitalturnover ratio when good implies that current payments can be made easily.Agood Debtor Turnover Ratio reflects fast repayment from debtors.