Aveneu Park, Starling, Australia

Paper and level of working capital. Research Methodology :Average

Paper
1: Working capital management
efficiency and firm profitability: A study of indian retail industry

Introduction:
The
Indian sector is one of the most susceptible sectors of the Indian Economy.
Nonetheless, this sector is very promising and profit making. The hyper-market
sector in India showed an approximate growth of 314.1% and touched roughly INR
452.6 in 2015, according to BMI. Annual growth of Indian retail sector was
expected to reach 25%. Worth of modern retail in India was around $200 billion
2016. In the context of financial upheaval, efficient working capital is of
vital importance. This study focuses on the Indian Retail and its efficiency of
working capital.

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Objective:

·        
To assess the multiple factors of
working capital

·        
To optimise the usage of current assets

·        
To examine the liquidity graph, cash
management being the primary focus

·        
To analyse the correlation between sales
and level of working capital.

Research
Methodology :Average
sales of five large scale companies in the concerned sector were chosen on the
basis of past three year’s sales data (secondary data). Tools and techniques
applied-ratio analysis, time series graphs, regression analysis.

Result
: Over
the last three years the working capital for Shoppers Stop (one of companies
selected) has been consistently negative. This show a policy of financing
operations via interest free short-term liabilities.Working capital per square
feet has been reduces through effective inventory management and by procuring a
larger segment of goods on consignment basis.Even though Cash balance is not a
concern, keeping a buffer for a company like Shopper’s Stop is
recommended.There is no change observed in sundry debtors. On the other hand,
due to rigorous store expansion, accrued income, lease rent and receivables has
escalated.

Conclusion
:The
companies that handle their net working capital efficiently are the most
optimum.There has been a reduction in net working capital cycle due to
competent management of working capital.

Paper
2:  Working Capital
Management Efficiency in Indian Leather

Introduction:To
develop value for shareholder, as a result of time delay between expenditure on
procurement of raw material and returns from sale of finished goods, effective
management of working capital plays a vital role.

Objective:To
establish a relationship between Inventory Conversion Period (ICP), Average
Collection Period (ACP), Average Payment Period (APP), Cash Conversion Cycle
(CCC) and profitability of the firm.

Research
methodology:Pertinent magazines, journals and
working papers were used as secondary source. Correlation aand multiple
regression analysis, analysis of variance and summary statistics were put to
use

Results:A
positive and irrelevant correlation between inventory conversion period and
profitability. A significant relationship between leverage and average
collection period is observed.

Conclusion:By
limiting the days accounts receivable  ,
value creation is attempted by managers for shareholders.Reasonable maximum
should be attained in inventories and account payment period must also
increase.

Paper
3: Working Capital and Credit
Needs of Foodgrains Distribution in India

Introduction:
This
study pertains to the years 1970-1973. The selective credit control policies of
the Reserve Bank of India are framed with a view to making it more difficult to
obtain credit against a hypothecation of food grains.

Objectives:Estimation
of working capital needed to procure and distribute food grains (wheat rice and
coarse grains) and valuate the need of marketed surplus.

Research
Methodology: a)Wheat: The pattern was formed on the
basis of a study on the monthly average of wheat in the markets b) Rice :For 2
quarterly months, a normal distribution was presumed. And rest, a uniform
distribution. (c) Other food grains: a continuous distribution pattern was
adopted.

Results:
Two
situations were assumed for working capital model.The opening stock of every
month will cater to the demand of 2 months. The stock remaining after the
purchases and sale made in this period and the opening stock of the subsequent
months will be the stock as on date. The other period being of 3 months.15% of
the total bank advances was the maximum credit available, beyond which they had
to rely on non banking sources.

Conclusion:
By providing adequate credit to food grains business it is possible to bring
better discipline and control on the stocks and the tendency to hoard can be
curbed. It will also decrease the cost of financing. Due to mismanagement in
the assessment of working capital the bank credit cannot be held
responsible.  The bank credit only met
38% of working capital required during 1972-73. 
The cost of financing soared due to dependency on non banking sources
which also led to inflation in food grains.

Paper
4: The impact of working
capital management toward profitability on food and beverage companies listed
in indonesia stock exchange.( ISE)

Introduction:12
food and beverage companies listed under ISE during 2010-14 are the sample for
this study. Return On Asset(ROA) is used to analyse efficiency and
profitability in operational activities involving the assets.

Objective
:Working capital turnover and cash conversion cycle
are studied thoroughly keeping in mind the incidence of working capital
management on profit of a company.

Research
Methodology :It has a quantitative approach which
uses secondary data, panel data regression and statistical analysis techniques
were used. f test and t test were applied.

Results:  F test-Variables such as working capital
turnover and cash conversion cycle impacted ROA significantly.

Conclusions:The
profit recorded using ROA was affected the most by working capital turnover and
cash conversion cycle. Working capital and cash conversion cycle contributes
69.63% of ROA turnover and the remaining 30.37% is contributed by other
variables.

Paper
5: Working capital management
of fertilizer companies of India

Introduction:Working
capital has a crucial role for determining liquidity position. For the purpose
of this study, Chambal Fertilizers and Chemicals Ltd. (CFCL), Nagarjuna
Fertilizers and Chemicals Ltd. (NFCL), National Fertilizers Ltd. (NFL),
Rashtriya Chemicals and Fertilizers Ltd. (RCFL) were chosen.

Objectives:

1. To assess management of working capital of
fertilizer companies and analyse the effectiveness on liquidity.

2. Analyse the correlation between liquidity and
profitability via rank correlation.

Research
methodology: Information was accessed from www.moneycontrol.com
using the annual reports.To examine the significance of rank correlation t test
and spearmans rank correlation was used.

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

Conclusion
: Profitability decreases when there is an increase in
the liquidity of a company.Current ratio, quick ratio and working capital
turnover ratio when good implies that current payments can be made easily.A
good Debtor Turnover Ratio reflects fast repayment from debtors.Paper
1: Working capital management
efficiency and firm profitability: A study of indian retail industry

Introduction:
The
Indian sector is one of the most susceptible sectors of the Indian Economy.
Nonetheless, this sector is very promising and profit making. The hyper-market
sector in India showed an approximate growth of 314.1% and touched roughly INR
452.6 in 2015, according to BMI. Annual growth of Indian retail sector was
expected to reach 25%. Worth of modern retail in India was around $200 billion
2016. In the context of financial upheaval, efficient working capital is of
vital importance. This study focuses on the Indian Retail and its efficiency of
working capital.

Objective:

·        
To assess the multiple factors of
working capital

·        
To optimise the usage of current assets

·        
To examine the liquidity graph, cash
management being the primary focus

·        
To analyse the correlation between sales
and level of working capital.

Research
Methodology :Average
sales of five large scale companies in the concerned sector were chosen on the
basis of past three year’s sales data (secondary data). Tools and techniques
applied-ratio analysis, time series graphs, regression analysis.

Result
: Over
the last three years the working capital for Shoppers Stop (one of companies
selected) has been consistently negative. This show a policy of financing
operations via interest free short-term liabilities.Working capital per square
feet has been reduces through effective inventory management and by procuring a
larger segment of goods on consignment basis.Even though Cash balance is not a
concern, keeping a buffer for a company like Shopper’s Stop is
recommended.There is no change observed in sundry debtors. On the other hand,
due to rigorous store expansion, accrued income, lease rent and receivables has
escalated.

Conclusion
:The
companies that handle their net working capital efficiently are the most
optimum.There has been a reduction in net working capital cycle due to
competent management of working capital.

Paper
2:  Working Capital
Management Efficiency in Indian Leather

Introduction:To
develop value for shareholder, as a result of time delay between expenditure on
procurement of raw material and returns from sale of finished goods, effective
management of working capital plays a vital role.

Objective:To
establish a relationship between Inventory Conversion Period (ICP), Average
Collection Period (ACP), Average Payment Period (APP), Cash Conversion Cycle
(CCC) and profitability of the firm.

Research
methodology:Pertinent magazines, journals and
working papers were used as secondary source. Correlation aand multiple
regression analysis, analysis of variance and summary statistics were put to
use

Results:A
positive and irrelevant correlation between inventory conversion period and
profitability. A significant relationship between leverage and average
collection period is observed.

Conclusion:By
limiting the days accounts receivable  ,
value creation is attempted by managers for shareholders.Reasonable maximum
should be attained in inventories and account payment period must also
increase.

Paper
3: Working Capital and Credit
Needs of Foodgrains Distribution in India

Introduction:
This
study pertains to the years 1970-1973. The selective credit control policies of
the Reserve Bank of India are framed with a view to making it more difficult to
obtain credit against a hypothecation of food grains.

Objectives:Estimation
of working capital needed to procure and distribute food grains (wheat rice and
coarse grains) and valuate the need of marketed surplus.

Research
Methodology: a)Wheat: The pattern was formed on the
basis of a study on the monthly average of wheat in the markets b) Rice :For 2
quarterly months, a normal distribution was presumed. And rest, a uniform
distribution. (c) Other food grains: a continuous distribution pattern was
adopted.

Results:
Two
situations were assumed for working capital model.The opening stock of every
month will cater to the demand of 2 months. The stock remaining after the
purchases and sale made in this period and the opening stock of the subsequent
months will be the stock as on date. The other period being of 3 months.15% of
the total bank advances was the maximum credit available, beyond which they had
to rely on non banking sources.

Conclusion:
By providing adequate credit to food grains business it is possible to bring
better discipline and control on the stocks and the tendency to hoard can be
curbed. It will also decrease the cost of financing. Due to mismanagement in
the assessment of working capital the bank credit cannot be held
responsible.  The bank credit only met
38% of working capital required during 1972-73. 
The cost of financing soared due to dependency on non banking sources
which also led to inflation in food grains.

Paper
4: The impact of working
capital management toward profitability on food and beverage companies listed
in indonesia stock exchange.( ISE)

Introduction:12
food and beverage companies listed under ISE during 2010-14 are the sample for
this study. Return On Asset(ROA) is used to analyse efficiency and
profitability in operational activities involving the assets.

Objective
:Working capital turnover and cash conversion cycle
are studied thoroughly keeping in mind the incidence of working capital
management on profit of a company.

Research
Methodology :It has a quantitative approach which
uses secondary data, panel data regression and statistical analysis techniques
were used. f test and t test were applied.

Results:  F test-Variables such as working capital
turnover and cash conversion cycle impacted ROA significantly.

Conclusions:The
profit recorded using ROA was affected the most by working capital turnover and
cash conversion cycle. Working capital and cash conversion cycle contributes
69.63% of ROA turnover and the remaining 30.37% is contributed by other
variables.

Paper
5: Working capital management
of fertilizer companies of India

Introduction:Working
capital has a crucial role for determining liquidity position. For the purpose
of this study, Chambal Fertilizers and Chemicals Ltd. (CFCL), Nagarjuna
Fertilizers and Chemicals Ltd. (NFCL), National Fertilizers Ltd. (NFL),
Rashtriya Chemicals and Fertilizers Ltd. (RCFL) were chosen.

Objectives:

1. To assess management of working capital of
fertilizer companies and analyse the effectiveness on liquidity.

2. Analyse the correlation between liquidity and
profitability via rank correlation.

Research
methodology: Information was accessed from www.moneycontrol.com
using the annual reports.To examine the significance of rank correlation t test
and spearmans rank correlation was used.

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

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

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