Working Capital Management

Impact of Working Capital focussing in the profitableness of Hindalco Industries Limited J P Singh* and Shishir Pandey** For the successful works of any commercial enterprise validation, restore and current assets play a vital role. Management of operative not bad(p) is essential as it has a civilize impact on profitability and liquidity. An attempt has been made in this paper to study the working capital components and the impact of working capital management on profitability of Hindalco Industries Limited. The paper overly makes an attempt to study the correlation between liquidity, profitability and get ahead Before Tax (PBT) of Hindalco. The study is based on secondhand data collected from annual reports of Hindalco for the study period 1990 to 2007. The balance analysis, percentage method and coefficient of correlation have been used to probe the data. Multiple regressions were used to check the significant impact on the profitability of Hindalco. Introduction A successful commercial organization demand two types of assets, viz., heady assets and current assets. Fixed assets includeâ€"land, building, plant, machinery, furniture, etcetera These are not only purchased for the purpose of sale, but similarly for the purpose of earning profit for many years.

Current assets include, raw materials, work-in-progress, absolute goods, sundry debtors, bills receivables, cash, bank balance, etc. These are purchased for the purpose of employment and sales, like raw material into swindle finished products, semi finished products into finished products, finished products into debtors and debtors transferred into cash or bills receivables. The fixed assets are used in increasing production of an organization and the current assets are used in using the fixed assets for day to day working. The management of this working capital is cognise as working capital management. The term working capital refers to the amount of capital which is readily available to an organization. Management of working capital deals... If you want to get a full essay, revision it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!