ANANT KUMAR Main Report

ANALYSIS OF WORKING CAPITAL MANAGEMENT OF KMWPL
A PROJECT REPORT
ON
ANALYSIS OF WORKING CAPITAL MANAGEMENT OF KMWPL FOR
SUBMITTED BY
ANANT KUMAR
(2016-17)
IN
PARTIAL FULFILMENT OF:
MBA++(FINANCE CERTIFICATE )
1
This is to certify that MR. ANANT KUMAR who is bonafide student of

DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH (DIMR),
Pune, has worked on Project titled
“Analysis of Working Capital Management in KMWPL” and has successfully

completed the project work in partial fulfillment of MBA++ (Finance).
This report is the record of student’s own efforts under our supervision and guidelines.
Internal Guide Director, DIMR
2
ACKNOWLEDGEMENT
I sincerely feel the credit of this project cannot narrow down to one individual. This
work is an integrated effort of all those concerned, through whose cooperation and
guidance we could achieve its completion. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of
this project. I am grateful for their constant support and help.
My sincere thanks to Mr. Suresh Patil (Finance Controller), KMWPL & Mr.
Sharad Dahale (Senior Manager- Finance), KMWPL for guiding me on various
aspects and adding valuable inputs useful for the project and showing the right path
to its completion. I would like to show my greatest appreciation to them for their
valuable guidance, continuous encouragements and tremendous patience in
discussing my problem.
That has been of the greatest help in bringing out my task in the present shape. The project
would not have been possible without their valuablae time and support.
I would also like to thank all the finance staff of Kalyani Maxion Wheels Pvt.
Ltd. for their help and support.
3
DECLARATION
I, ANANT KUMAR, student of DNYANSAGAR INSTITUTE OF MANAGEMENT

AND RESEARCH (DIMR), Pune.
Hereby declare that the project entitled as “A study of working capital
management of KMWL”, under the guidance of “Mr. Suresh Patil, Finance
Controller, Kalyani Maxion Wheels Pvt. Ltd.” and submitted to
“DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH (DIMR),
Pune.” as an integral part of the MASTER OF BUSINESS ADMINISTRATION, is
exclusively a bona fide and original work (except for those available in Public
domain) done by me during academic year 2016-18. No part of this report has been
submitted to anyone at any time before.
4
Date: June 30,2017 ANANT KUMAR

Place: Pune
TABLE OF CONTENTS
Sr. No. Table of Contents Page No.
1. Executive Summary 1
2. Industry Profile 2-7
3. Company Profile 8-14
4. Introduction 15-24
5. Objective and Scope 25
6. Research Methodology 26-27
7. SWOT Analysis 28
8. Limitation of the Study 29
9. Literature Review 30-32
5
10. Analysis and Interpretation 33-44
11. Findings of the data 45-46
12. Suggestions 47
13. Conclusions 48
14. References 49
EXECUTIVE SUMMARY
A Study of Working Capital Management (WCM) of Kalyani Maxion Wheels Pvt.

Ltd, Pune. The major objective of the study is to get proper understanding of the
working capital management of Kalyani Maxion Wheels Ltd. and to suggest to
measures to overcome the shortfalls if any.
Funds needed for short term purpose like purchase of raw materials, payment of
wages and other day to day expenses are known as working capital. Decisions
relating to working capital (Current assets-Current Liabilities) and short term
financing are known as Working Capital Management. It involves the relationship
between firm’s short-term assets and its short-term liabilities. By definition, working
capital management entails short-term finance, generally relating to the next one year
period.
The goal of working capital management is to ensure that the firm is able to continue
its operation and that it has sufficient cash flow to satisfy both maturing short-term
debt and upcoming operational expenses.
6
Working capital is primarily concerned with inventories management, receivable

management, cash management and payable management.
CHAPTER - 1
INDIAN AUTO ANCILLARY INDUSTRY
Introduction
Indian auto component sector Indian auto ancillary/auto component industry is one
of the fastest growing industries and is riding on the success of the auto sector. Indian
auto industry is highly competitive with the presence of a large number of global and
Indian auto-companies The auto-components industry accounts for almost 7% of
India’s Gross Domestic Product (GDP) and employs as many as 19 million people,
both directly and indirectly. A stable government framework, increased purchasing
power, large domestic market, and an ever-increasing development in infrastructure
have made India a favorable destination for investment.
Market Participation
Auto sector alone contributes nearly 84.3% of the total turnover (OEM) and the rest
belongs to the replacement market. The auto component sector clocked a turnover of
USD 35.1 bn in FY14, recording a CAGR of 7.8% during the period of 20082014
and is projected to become the fourth largest automobile producer globally by 2020
with a turnover over USD 150 bn by FY20, according to Automotive Component
Manufacturing Association of India (ACMA).
Over the last decade, the automotive components industry has scaled three times to
US$ 40 billion in 2015 while exports have grown even faster to US$11 billion. This
has been driven by strong growth in the domestic market and increasing globalisation
(including exports) of several Indian suppliers.
According to the Automotive Component Manufacturers Association of India
7
(ACMA), the Indian auto-components industry is expected to register a turnover of

US$ 100 billion by 2020 backed by strong exports ranging between US$ 80-US$ 100
billion by 2026, from the current US $11.2 billion.
Investments
The cumulative Foreign Direct Investment (FDI) inflows into the Indian automobile
industry during the period April 2000 – September 2016 were recorded at US$ 15.80
billion, as per data by the Department of Industrial Policy and Promotion (DIPP).
Some of the major investments made into the Indian auto components sector are as
follows:
• MRF Ltd plans to invest Rs 4,500 crore (US$ 660.231 million) in its two
factories in Tamil Nadu as part of its expansion plan.
• Hero MotoCorp is investing Rs 5,000 crore (US$ 733.59 million) in five
manufacturing facilities across India, Colombia and Bangladesh, to increase
its annual production capacity to 12 million units by 2020.
• Auto components maker Bharat Forge Ltd (BFL), the flagship company of
the US$ 3 billion Kalyani Group, has formalised agreement with RollsRoyce
Plc which will supply BFL with critical and high integrity forged and
machined components.
• Japanese auto major Honda is planning to step up supply and target exporting
of auto components worth Rs 1,500 crore (US$ 224.45 million) from India to
it various international operations.
• Gestamp, a Spanish automobile component manufacturing company, has
invested Rs 260 crore (US$ 38.63 million) in a new hot stamping plant in
Pune, in order to cater to the increasing demand for lighter vehicles in India.
Exide Industries, India’s biggest automotive battery maker, plans to invest
around Rs 300 crore (US$ 45 million) in West Bengal to expand its capacity
for advanced motorcycle batteries over a period of 18 months.
8
• Mercedes Benz India Private Limited has set up India’s largest spare parts
warehouse in Pune, with an area of 16,500 square meters which can stock up
to 44,000 parts. It will also include a vehicle preparation centre that can stock
up to 5,700 cars to customise them before delivery.
• Everstone Capital, a Singapore-based private equity (PE) firm, has purchased
51 per cent in Indian auto components maker SJS Enterprises for an
estimated Rs 350 crore (US$ 51.35 million).
Government Initiatives
The Government of India’s Automotive Mission Plan (AMP) 2006-2016 has come a
long way in ensuring growth for the sector. It expected that this sector’s contribution
to the GDP will reach US$ 145 billion in 2016 due to the government’s special focus
on exports of small cars, multi-utility vehicles (MUVs), two and threewheelers and
auto components. Separately, the deregulation of FDI in this sector has also helped
foreign companies to make large investment in India.The Government of India’s
Automotive Mission Plan (AMP) 2016–2026 envisages creation of an additional 50
million jobs along with an ambitious target of increasing the value of the output of
the sector to up to Rs 1,889,000 crore (US$ 282.65 billion).
Road Ahead
The rapidly globalising world is opening up newer avenues for the transportation
industry, especially while it makes a shift towards electric, electronic and hybrid cars,
which are deemed more efficient, safe and reliable modes of transportation. Over the
next decade, this will lead to newer verticals and opportunities for autocomponent
manufacturers, who would need to adapt to the change via systematic research and
development.
9
The Indian auto-component industry is set to become the third largest in the world
by 2025. Indian auto-component makers are well positioned to benefit from the
globalisation of the sector as exports potential could be increased by up to four times
to US$ 40 billion by 2020.
Auto Ancillary Industry
Transmission & Suspensions &

Engine &parts Equipment Electrical parts Others
steering parts braking parts
Brake and
Pistons and Starter Sheet metal
Gears brake Headlight
rings motors plant
assemblies
Engine valves Body and

and part Wheels Brake linings Halogen bulbs Spark plug
chassis
Fuel-injection Electric
systems and
Steering Shock
Wiper motors ignition Fan belts
Systems absorbers
carburettors systems(EIS)
cooling Hydraulic
Dashboard Flywheel
systems and Axles Leaf springs
instrument magnetos
pneumatic
part instruments
Power train Other panel

components Clutches instruments
1
0
GLOBAL INDUSTRY
Global automotive industry has been witnessing a high growth which is laying
exponential opportunities for the automotive parts industry. There are basically two
types of market for auto parts manufacturing namely Original Equipment
Manufacturing (OEM) and aftermarket. In OEM the auto parts manufacturing
industry supply components to the OEMs which are the automobile manufacturers.
Generally the aftermarket supplies of auto parts manufacturing is greater than its
OEM supplies.
The global automotive industry is in a state of flux with markets like India and
China driving growth. The annual sales figures in more mature markets are now at
pre-recession levels, signaling a new beginning for this sector. However, this
transformational phase is also laden with subtle uncertainties. The biggest
challenge that the industry needs to overcome this year is the unevenness of the
global markets resulting from turmoil in stock market levels, license restrictions on
new vehicles, stringent emission controls and so on.
The road ahead
In 2016, we are likely to realize that the weakness of the emerging markets is
temporary, especially in light of the fact that the market fundamentals in such regions
are showing early signs of recovery. The global demand for LVs (Light Vehicles) is
predicted to grow consistently in these economies owing to the rise in per capita
income.
Automotive industry experts tend to be optimistic about the market on a global
level, where the growth forecast is a steady 5.1% in 2016 over a mere 2.1% in
2015. In fact, the estimation has pegged the worldwide automotive sales to reach 90
1
1
million units in the coming year. Now, let us have a quick look at some of the key
growth initiators and what they mean for the sector:
• Reinforcing economy along with strong employment will help the US market to cross
18 million units over the next two years
• Low European interest rates, easy finance options, government incentives and dealer
discounts will fuel a 2.5- 3% rise in sales in Europe
• Declining interest rates and low energy prices will accelerate the Indian automotive
market, allowing a double digit growth for the first time since 2010
• China’s initiative to reduce sales tax for passenger vehicles is expected to expand the
overall volume by 15-16% in 2016 So the writing’s on the wall, the industry is likely
to make a serious comeback. With powerful new trends and forces to confront, global
automotive companies clearly have their tasks cut out for them.
1
2
KALYANI MAXION WHEELS PVT. LTD.

Company Profile:
Kalyani Maxion Wheels Pvt. Ltd. was incorporated on 18th January 1996 and was jointly
promoted by Kalyani
Group and Lemmerz Werke GmbH (part of the Hayes group) with 75 percent and 25
percent equity participation respectively. The Company acquired Wheel Rim
division of Bharat Forge Limited and commenced its commercial its commercial
operations from 4th June 1996. The principal business of the Company is to
manufacture wheel Rim for commercial vehicles. The manufacturing facility of the
company is situated in Pune, India. In August 1998, the Hayes Group increased its
holding in the company to 85 percent by acquiring additional 60 percent if the equity
held by Kalyani Group.
As a part of expansion with diversification of product line, the company has entered
into Passenger Car segment and has successfully started its new manufacturing
product line as “Car Wheels” with effect from the 15th February 2010 at the company
owned premises, adjoining to the existing Truck Wheel plant having installed
capacity of 2 million wheels per annum.
1
3
Kalyani Hayes Lemmerz is one of the fastest growing Auto component Manufacturing
Company. Company has shown a growth from Rs. 150 crore
(Approx. 33 MI USD @ 45 Rs. per USD) during 2005 to Rs. 400 Crore (Approx 80
MI USD @ 50 Rs. per USD) in 2011 and is expected to achieve a turnover target of
Rs. 650 Crore (Approx 130 MI USD @ 50 Rs. per USD) in 2014. Company’s profit
was in a range of Rs. 22 Crore to 45 Crore during the period year 2005 to year 2010.
The business cycle impact and global automobile recession in 2008-09 have declined
profits to Rs. 25 Crore in 2009-10. Company has experienced business cycle in 2000-
2003, 2008-09 and witnessed a tremendous growth after 2009.
Product Portfolio:
Wheel rims range from 5.5-16 to 8.5-20, drop centre wheel rims of 5.5 x 15 and 4.5E
x 16 to 8.25 x 22.5 that are designed to reduced weight. The specially designed discs
with a back bending effect imparts more durability, while the 2 –piece design for
HCV’s give grip on the gutter and are easier for removal and fitment. The 8 hole
design improves cooling of the brake drum –critical in hilly terrains.
1
4
Truck Wheels
Hub piloted tubeless Wheels Wide base tubeless Wheels
Stud piloted tubeless Wheels Military Wheels
Car Wheels
15
ORGANISATIONAL STRUCTURE
1
6
Customers
CUSTOMERS
1
7
International market
1. Daimler Chrysler, Germany
2. Volvo, Sweden
3. Nissan, Spain
4. JSB Corporation, Korea
5. G.S. Corporation, Korea
6. Pro International, Hong Kong
7. TNT, China
1
8
8. IVECO, Italy
9. Perfect Machining, Malaysia
Domestic market
1. Tata motors, Pune, Lucknow, Jamshedpur and Spare Part Division
2. Tatra Udyog, Chennai
3. Volvo India, Bangalore
4. Swaraj Mazda
5. Eicher Motors
6. Bajaj Tempo Limited
7. Mahindra and Mahindra
VISION OF THE COMPANY
Be a Premier Automotive Supplier:
We focus on the Right Products, Right Costs, Right Geographic Markets and
Right People. To meet the challenge and deliver, we execute the following
strategies:
Grow by Satisfying Customers:
We maximize continuous improvement, quality, technology, innovation and

safety. At Kalyani Maxion Wheels Pvt. Ltd., every individual plays a vital role
in focusing on the Right Products and the Right Geographic Markets. This
ensures Company-wide customer service that is second to none.
1
9
To be Low-Cost Producer:
The industry climate affects our customers and our Company. We are
developing a position as a low-cost producer, continuously seeking to eliminate
waste and to develop cost-efficient products and processes. Our focus is on the
Right Costs.
Have the Best People:
At Kalyani Maxion Wheels Pvt. Ltd., we have a passion for people -- the Right
People -- trained and talented at all levels of the Company. Open communication,
teamwork and individual responsibility fosters a “can-do” attitude at Hayes
Lemmerz.
TECHNOLOGY USED IN THE COMPANY
Kalyani Maxion Wheels Pvt. Ltd. Wheels enjoy many technological advantages
in the product by Hayes Lemmerz international. The
major technological features of Kalyani Maxion Wheels
Pvt. Ltd. Wheels are: Lemmerz follows “cold working
manufacturing process” and also pioneers in
“FlowForming Technology” for wheel rims and holds
numerous patents in Europe for various wheel design
processes.
 Compression moulding of rim which ensures the butt

welding strength of the joint.
 Flow forming of rim reduces the section thickness in certain low stress area
and makes the wheel lighter in construction.
 Submerged Arc welding ensures sufficient weld penetration at the welding
joint and finally the strength of joint.
2
0
 The design od disc is optimized for strength and adequate fatigue life.
 Kalyani Maxion Wheels Pvt Ltd has world class CATHODIC ED
COATING facility, which has appreciated by Volvo & DC, results in best
painting quality.
 KMWPL wheel rim design will not only help in increasing tyre life but also
gives better fuel efficiency due to stable wheel operations
 Performance of KMWPL products has been appreciated by all OEMs in
the India and abroad by its superior field performance.
At Kalyani Maxion Wheels Pvt. Ltd., company views state of the art CAD/CAE
capabilities as the catalyst in product development cycle. Product design and
analysis will reduce manufacturing and service cost and reduce risk of
performance failure also reduce time for product introduction into the market.
Thus improving, engineering process and optimizing product quality.
Kalyani engineers are able to investigate and accurately predict critical design
characteristics in order to optimize product performance. In house testing
facilities enable KMWPL to co-relate predictions for test.
Product optimization is combined with manufacturing process modeling and design
optimization.
KMWPL uses the techniques to establish product manufacturability to simulate
and evaluate assembly and service conditions to accommodate product
functionality changes. Thus KMWPL has endeavored to achieve best product
quality at the optimized cost at just in time delivery and instant service to the
customer thereby customer satisfaction to the fullest.
2
1
WORKING CAPITAL MANAGEMENT
Working capital is the capital available for conducting the day-to-day operations of an
organization; normally the excess of current assets over current liabilities.
Working capital management is the management of all aspects of both current
assets and current liabilities, to minimize the risk of insolvency while maximizing
the return on asset.
Working capital has been described as the “life blood of any business which is apt because
it constitutes a cyclically flowing stream through the business”.
Working Capital may be classified in two ways: a)

Concept based working capital
b) Time based working capital
Concepts of working capital

1. Gross Working Capital: It refers to the firm’s investment in total current or circulating
assets.
2. Net Working Capital:

The term “Net Working Capital” has been defined in two different ways:
i.) It is the excess of current assets over current liabilities. This is, as a matter of fact,
the most commonly accepted definition. Some people define it as only the
difference between current assets and current liabilities. The former seems to be a
better definition as compared to the latter.
ii.) It is that portion of a firm’s current assets which is financed by long-term funds.
2
2
3. Permanent Working Capital: This refers to that minimum amount of investment in all
current assets which is required at all times to carry out minimum level of business
activities. In other words, it represents the current assets required on a continuing basis
over the entire year. Tandon Committee has referred to this type of working capital as
“Core current assets”.
The following are the characteristics of this type of working capital:
1. Amount of permanent working capital remains in the business in one form or
another. This is particularly important from the point of view of financing. The
suppliers of such working capital should not expect its return during the life-time of
the firm.
2. It also grows with the size of the business. In other words, greater the size of
the business, greater is the amount of such working capital and vice versa
Permanent working capital is permanently needed for the business and therefore it should
be financed out of long-term funds.
4. Temporary Working Capital: The amount of such working capital keeps

on fluctuating from time to time on the basis of business activities. In other words,
it represents additional current assets required at different times during the
operating year. For example, extra inventory has to be maintained to support sales
during peak sales period. Similarly, receivable also increase and must be financed
during period of high sales. On the other hand investment in inventories,
receivables, etc., will decrease in periods of depression. Suppliers of temporary
working capital can expect its return during off season when it is not required by
the firm. Hence, temporary working capital is generally financed from short term
sources of finance such as bank credit.
5. Negative Working Capital: This situation occurs when the current liabilities
exceed the current assets. It is an indication of crisis to the firm.
The main objective of working capital management is to get the balance of current assets
and current liabilities right.
2
3
Importance of working capital management

Current assets are a major financial position statement item and specially significant
to smaller firms. Mismanagement of working capital is therefore a common cause
of business failure, e.g.:
• Inability to meet bills as they fall due
• Demand on cash during periods of growth being too great (overtrading)
Overstocking
Working capital management is a key factor in an organization’s long-term success.
The balancing act: Profitability Vs Liquidity
The decision regarding the level of overall investment in working capital is a cost/benefit
trade-off – liquidity versus profitability.
2
4
Unprofitable companies can survive if they have liquidity. Profitable companies can
fail if they run out of cash to pay their liabilities (wages, amount due to suppliers,
overdraft, interest, etc.).
Liquidity in the context of working capital management means having enough cash
or ready cash to meet all payment obligations when these fall due. The main
sources of liquidity are usually:
• Cash in the bank
• Short-term investments that can be cashed in easily and quickly
• Cash inflows from normal trading operations (cash sales and payments by receivables for
credit sales)
• An overdraft facility or other ready source of extra borrowings.
Cash balances and cash flows need to be monitored just as closely as trading profits
Elements of working capital

Managing working capital involves managing the individual elements which make up
working capital:
• Accounts Receivables
• Accounts Payables
• Inventory
Funding strategies
In the same was as for long-term investments, a firm must make decision about
what source of finance is best used for the funding of working capital requirements.
The decision about whether to choose short-term or long-term options depends upon
a number of factors:
• The extent to which current assets are permanent or fluctuating
• The costs and risks of short-term finance
2
5
• The attitude of management to risk
Permanent or fluctuating current assets

In most businesses a proportion of the current assets are fixed over time, i.e.
‘permanent’. For example:
• Buffer inventory
• Receivables during the credit period
• Minimum cash balances
The choice of how to finance the permanent current assets is a matter for
managerial judgment, but includes as analysis of the cost and risks of short-term
finance.
The attitude of management to risk: aggressive, conservative and matching funding

policies
There is no ideal funding package, but three approaches may be identified.
• Aggressive – finance most current assets, including ‘permanent’ ones, with short-term
finance. Risky but profitable.
• Conservative – long-term finance is used for most current assets, including a proportion of
fluctuating current assets. Stable but expensive.
• Matching – the duration of the finance is matched to the duration of the investment.
A firm choosing to have a lower level of working capital than rivals is said to have
an ‘aggressive’ approach, whereas a fisrm with a higher level of working capital
has a ‘conservative’ approach.
An aggressive approach will result in higher profitability and higher risk, while a conservative
approach will result in lower profitability and lower risk.
2
6
Over-capitalization
If there are excessive inventories, accounts receivable and cash, and very few
accounts payable, there will be excessive and the company will be overcapitalized.
Overtrading
Cash flow is the lifeblood of the thriving business. Effective and efficient
management of the working capital investment is essential to maintaining control of
business cash flow. Management must have full awareness of the profitability
versus liquidity trade-off.
For example, healthy trading growth typically produces:
• Increased profitability
• The need to increase investment in non-current assets and working capital.
In contrast to over-capitalization, if the business does not have access to sufficient
capital to fund the increase, it is said to be “overtrading”. This can cause serious
trouble for the business as it is unable to pay its business creditors.
The cash operating cycle (elements)
The cash operating cycle is the length of time between the company’s outlay on raw
materials, wages and other expenditure and the inflow of cash from the sale of
goods.
The faster a firm can ‘push’ items around the cycle the lower its investment in working
capital will be.
2
7
Calculation of the cash operating cycle

For a manufacturing business, the cash operating cycle is calculated as:
Raw materials holding period x
Less: payables payment period (x)
WIP holding period x
Finished goods holding period x
Receivables collection period x
. x
2
8
The cycle may be measured in days, weeks or months. The holding periods are calculated
using a series of working capital ratios.
Factors affecting the length of the operating cycle Length

of the cycle depends on:
• liquidity versus profitability decisions

• terms of trade
• management efficiency
• industry norms, e.g. retail versus construction
The optimum level of working capital is the amount that results in no idle cash or unused
inventory, but that does not put a strain on liquid resources.
Working capital ratios

Ratios to determine the operating cycle
The periods used to determine the cash operating cycle are calculated by using a series
of working capital ratios.
The ratios for the individual components (inventory, receivables and payables) are
normally expressed as the number of days/weeks/months of the relevant income
statement figure they represent.
Inventory holding period

The ratio is calculates the length of time inventory is held between purchase and sale.
Calculated as:
= Inventory x 365 .
Cost of Sales
2
9
In some cases, a more detailed breakdown of inventory may be required. Inventory holding
periods can be calculated for each type of inventory: raw materials, workin-progress and
finished goods.
Raw material inventory holding period
The length of time raw materials is held between purchase and being used in
production. Calculated as:
= Raw material inventory x 365 .

Material usage
WIP holding period

The length of time goods spend in production.
Calculated as:
= Work-in-progress inventory held x 365 .
Production cost
Finished goods inventory period
The length of time finished goods are held between completion or purchase and sale.
Calculated as:
= Finished goods inventory held x 365 .
Cost of goods sold
For all inventory period ratios, a low ratio is usually seen as a sign of good working
capital management. It is very expensive to hold inventory and thus minimum
inventory holding usually points to good practice.
3
0
Trade receivables days

The length of time credit is extended to customers.
Calculated as:
= Receivables x 365 .
Credit sales
Generally shorter credit periods are seen as financially sensible but length will also depend
upon the nature of the business.
Trade payable days

The average period of credit extended by suppliers.
Calculated as:
= Trade payables x 365 .
Credit purchases
Generally, increasing payables days suggests advantages is being taken of available
credit but there are risks:
• losing supplier goodwill
• losing prompt payment discounts
• Suppliers increasing the price to compensate.
Working capital liquidity ratios Two

key measures :
the current ratio and quick ratio, are used to assess short-term liquidity. Generally a higher
ratio indicates better liquidity.
Current ratio
3
1
Measures how much of the total current assets are financed by current liabilities.
Calculated as:
= Current assets .
Current liabilities
A measure of 2:1 means that current liabilities can be paid twice over out of existing
current assets.
Quick (acid test) ratio

The quick or acid test ratio measures how well current liabilities are covered by liquid
assets. This ratio is particularly useful where inventory holding periods are long.
Calculated as:
= Current assets – Inventory .
Current liabilities
A measure of 1:1 means that the company is able to meet existing liabilities if they all
fall due at once.
Working capital turnover

One final ratio that relates to working capital is the working turnover ratio and is calculated
as:
= Sales revenue .
Net working capital
This measures how efficiently management is utilizing its investment in working capital
to generate sales and can be useful when assessing whether a company is overtrading. It
must be interpreted in the light of the other ratios used.
OBJECTIVES
• To understand the concept of working capital management and its importance.
3
2
• To study the sources and uses of the working capital.

• To determine the amount of the working capital employed by KMWPL.
• To analyze the working capital management financial performance of the
KMWPL.
• To offer suggestions based on findings of the study.
SCOPE
The study is conducted at “Kalyani Maxion Wheels Pvt. Ltd. Pune” for 8 weeks duration.
The study is purely based on secondary data and all the information is available
within the company itself in the form of records. To get proper understanding of this
concept, I have done the study of the balance sheets, profit and loss a/c, cash
accounts, trial balance. I have also interacted with employees of finance department.
So, scope of the study is limited up to the availability of official records and
information provided by the employees. The study is supposed to be related to the
period of last five years.
CHAPTER – 3
RESEARCH METHODOLOGY
The term research refers to the systematic method of enunciating the problem,
formulating a hypothesis collecting the data, analyzing the facts and reaching certain
conclusions either in the form of solution towards the concern problem or in certain
generalization for some theoretical formulation.
Research Methodology is a way to solve systematically the research problem. It may
be understood as a science of studying how research is done scientifically.
3
3
Time period of the study:

The present study was undertaken during 8 weeks from 25th May – 25th July.
Purpose:
The purpose of this study is to properly analyze the working capital management of Kalyani
Maxion Wheels Pvt. Ltd., Pune over the period 2012-2016.
Information sources:
Primary data:
The primary data has been collected from personal interaction with the members of Finance
Department.
Secondary data:
The major source of data for this project was collected through annual reports; profit
and loss account of 5 year period from 2012-2016 and some more information was
collected from internet and text sources.
Sampling design
Sampling unit : Financial Statements
Sampling Size : Last five years financial statements
Tools used:
3
4
MS-Excel has been used for calculations.
3
5
SWOT ANALYSIS
Strengths
• Leading manufacturer of wheel rims with strong presence in the domestic M&HCV
market.
• Strong parentage as a subsidiary of Iochpe-Maxion (world’s largest Producer of wheel
rims) provides technological edge and access to OEM customers of its parent.
• Superior technology facilitates better profitability Vis-à- Vis its competitors.
• Diversification into passenger car segment mitigates risks arising from Cyclicality in
CV demand.
• Focus on new product developments and patent filings allows entry into Niche high
margin segments.
• Strong financial risk profile supported by healthy cash flows, moderate Gearing and
capex funded through internal accruals.
Weakness
• Exposed to demand cyclicality of the auto industry.
• Presence restricted to steel wheel rims in the face of rapidly increasing demand for
aluminum wheel rims.
• Relatively high client concentration; top four clients account for 52% of total sales.
• Profit margins vulnerable to fluctuations in exchange rate; no hedging mechanism in
place.
Opportunities
• Product diversification in passenger car segment. Growing global market.
Threats
• Loss in market share in CV division.
3
6
LIMITATIONS OF THE STUDY
• The analysis is limited to just five years of data study for financial analysis.
• Limited interaction with the concerned heads due to their busy schedule.
• The study covered a wide concept hence wide collection was not possible.
• The findings of the study are based on the information retrieved by the
selective unit.
• It has been difficult to calculate and analyze the ratio of foreign companies, because
their accounting policies are different compare to Indian financial accounting principles.
The Indian companies follow the INDIAN “GAAP” where as foreign companies follow
the US GAAP.
3
7
LITERATURE REVIEW
1. The research done by, Gass D., “How to Improve Working Capital
Management” (2006) “Cash is the lifeblood of business” is an often repeated
maxim amongst financial managers. Working capital management refers to the
management of current or short-term assets and short-term liabilities.
Components of short-term assets include inventories, loans and advances,
debtors, investments and cash and bank balances. Short-term liabilities include
creditors, trade advances, borrowings and provisions. The major emphasis is,
however, on short-term liabilities arise in the context of shortterm assets. It is
important that the companies minimize risk by prudent working capital
management.
2. The research done by, Thachappilly G., “Working Capital Management

Manages Flow of Funds”, (2009) describes that Working capital is the cash
needed to carry on operations during the cash conversion cycle, i.e. the days
from paying for raw materials to collecting cash from customers. Raw
materials and operating supplies must be bought and stored to ensure
uninterrupted production. Wages, salaries, utility charges and other incidentals
must be paid for converting the materials into finished products. Customers
must be allowed a credit period that is standard in the business. Only at the
end of this cycle does cash flow in again. The research done by,
3
8
Beneda, Nancy; Zhang, Yilei, “Working Capital Management, Growth and Performance
of New Public Companies.
3. The research done by, Samiloglu F. and Demirgunes K., “The Effect of
Working Capital Management on Firm Profitability: Evidence from Turkey” (2008)
describes that the effect of working capital management on firm profitability. In
accordance with this aim, to consider statistically significant relationships between firm
profitability and the components of cash conversion cycle at length, a sample consisting
of Istanbul Stock Exchange (ISE) listed manufacturing firms for the period of 1998-2007
has been analyzed under a multiple regression model. Empirical findings of the study
show that accounts receivables period, inventory period and leverage affect firm
profitability negatively; while growth (in sales) affects firm profitability positively.
4. Impact of Working Capital Management Policies on Corporate Performance -

An Empirical study – Sushma Vishnani, Bhupesh Kr. Shah (2007). It is felt
that there is the need to study the role of working capital management policies
on profitability of a company. Conventionally, it has been seen that if a
company desires to take a greater risk for bigger profits and losses, it reduces
the size of its working capital in relation to its sales. If it is interested in
improving its liquidity, it increases the level of its working capital.
However, this policy is likely to result in a reduction of the sales volume,

therefore of profitability. Hence, a company should strike a balance between
liquidity and profitability. In this paper an effort has been made to make an
empirical study of Indian Consumer Electronics Industry for assessing the
impact of working capital policies & practices on profitability during the
period 1994-95 to 2004-05. The impact of working capital policies on
3
9
profitability has been examined by computing coefficient of correlation and

regression analysis between profitability ratio and some key working capital
policy indicators ratios.
5. The research done by, Maynard E. Rafuse, “Working capital management:

an urgent need to refocus” Management Decision, (1996) Argues that attempts
to improve working capital by delaying payment to creditors is counter-
productive to individuals and to the economy as a whole. Claims that altering
debtor and creditor levels for individual tiers within a value system will rarely
produce any net benefit. Proposes that stock reduction generates system-wide
financial improvements and other important benefits. Urges those
organizations seeking concentrated working capital reduction strategies to
focus on stock management strategies based on “lean supply-chain”
techniques.
6. Capital Expenditure on Working Capital Management: An Empirical Study

across Industries in Thailand”, International Management Review, (2008), the
purpose of this research is to investigate the impact of firms capital expenditure
on their working capital management. The author used Shulman The research
done by, Appuhami, Ranjith B A, “The impact of Firms and Cox’s (1985)
Net Liquidity Balance and Working Capital Requirement as a proxy for
working capital measurement and developed multiple regression models. The
empirical research found that firm’s capital expenditure has a significant
impact on working capital management. The study also found that the firm’s
4
0
operating cash flow, which was recognized as a control variable, has a

significant relationship with working capital management.
ANALYSIS AND INTERPRETATION
Table 1. Table showing components of currents of KMWPL
(Rs. In Millions)
Years 2012 2013 2014 2015 2016

Inventories 401.92 438.60 447.20 408.19 814.82
Trade receivables 709.10 684.03 776.45 848.68 729.64
Cash & Bank bal. 18.96 64.64 151.12 169.06 216.21
Short-term loans & advances 184.95 132.78 232.00 378.71 169
Other Current Assets 1.68 1.71 2.78 2.52 3.74
Total Current Assets 1316.61 1321.76 1609.55 1807.16 1933.41
Sources: Annual reports
4
1
CURRENT ASSETS
2500
2000
1933.41
1500 1807.16
1609.55
1000 1316.63 1321.76
500
0
2012 2013 2014 2015 2016
Years
Current Assets
Interpretation:
The above table depicts the current assets of the company from 2012 to 2016,
during 2012 total current assets was Rs. 1316.63 millions, in the year 2013 it was Rs.
1321.76 millions, in year 2014 it was Rs. 1609.55 millions, in the year 2015 it was Rs.
1807.16 millions and in the year 2016 it was Rs. 1933.41 millions.
From the above table and graph it can be observed that there is an increase in the value
of current assets from year 2011-12 to 2015-16, which indicates growth of the
organization. The current assets increased in a small proportion from year 2012 to 2013
and the year 2015 to 2016. But in later years the increase was significant.
Table 2. Table showing Current Ratio of KMWPL
4
2
(Rs. In Millions)
Particulars 2012 2013 2014 2015 2016

Current Assets 1316.61 1321.76 1612.31 1807.16 1933.41
Current 1279.15 1162.73 1417.26 1676.26 1795.5
Liabilities
Current Ratio 1.03 1.14 1.14 1.08 1.08
CURRENT RATIO
1.16
1.14
1.12
1.10
1.08
1.06
1.04
1.02
1.00
0.98
0.96
2012 2013 2014 2015 2016
Years
Interpretation:
Acceptable current ratio vary from industry to industry. Generally, a current ratio of
2:1 is considered to be acceptable. The higher the current ratio is, the more capable
the company is to pay its obligations. Acc. to these industry as per bank norms
current ratio of 1.3 is a ideal ratio.
4
3
The current ratios from 2012 to 2016 are calculated and presented in the above table.
The current ratio for the year 2012 was 1.03 which has increases to 1.14 in 2013
because current assets have increased by approx. 4% to that of decrease in current
liabilities by approx. 9%. 2013 and 2014 the current ratio is maintained at 1.14
times. In 2015 it has again dropped from 1.14 times to 1.08 times and same is
maintained in 2016.
The company has maintained its current ratio above 1.3 which is a good sign; it
means that the company is capable to pay its obligations and has maintained the ratio
through out these years.
Table 3. Table showing Liquid Ratio of KMWPL
(Rs. In Millions)
Particulars 2012 2013 2014 2015 2016

Liquid Assets 914.71 883.16 1162.35 1398.97 1118.59
Liquid 1279.15 1162.73 1417.26 1676.26 1795.5
Liabilities
Liquid Ratio 0.72 0.76 0.82 0.83 0.62
4
4
LIQUID RATIO
1.00
0.80
0.60
LR
0.40
0.20
0.00
2012 2013 2014 2015 2016
Years
Interpretation:
Liquid ratio is an indicator of solvency of an entity and must be analyzed over a
period of time and also in the context of the industry the company operates in.
Generally, company should aim to maintain a liquid ratio that provides sufficient
leverage against liquidity risk given the level of predictability and volatility in a
specific business sector among other considerations. The more uncertain the
business environment, the more likely that companies would maintain higher liquid
ratios. Conversely, where cash flows are stable and predictable, companies would
seek to keep liquid ratio at relatively lower levels.
From the above table it can be noted that quick ratio of 0.83 at the end of year 2015
was highest. In the year 2016 the quick ratio was lowest at 0.62. Generally, a quick
ratio of 1:1 is considered to represent a satisfactory current financial situation, but it
does not imply a sound financial position. It should be kept in mind that all debtors
4
5
may not be liquid, and cash may be immediately needed to pay operating expenses.
Thus a company with a high value of quick ratio can suffer from shortage of funds if
it has slow paying, doubtful and long duration outstanding debtors. On other hand, a
company with a low value of quick ratio may really be operating with prosperity and
paying its obligations in time if it has been turning over its inventories
efficiently.
Table 4. Table showing net working capital of KMWPL

(Rs. In Millions)
Particulars 2012 2013 2014 2015 2016

Current Assets 1316.61 1321.76 1612.31 1807.16 1933.41
Current Liabilities 1279.15 1162.73 1417.26 1676.26 1795.5
Net working capital 37.48 159.03 192.29 130.90 137.91
4
6
NET WORKING CAPITAL

250.00
192.29
200.00
159.03
150.00 130.90 137.91 NWC
100.00
50.00 37.48
0.00
2012 2013 2014 2015 2016
Years
Interpretation:
A company’s net working capital is the amount of money it has available to spend
on its day-to-day business operations, such as paying short term bills and buying
inventory, paying wages, salaries. Positive working capital is required to ensure that
a firm is able to continue its operations and has sufficient funds to satisfy both
maturing short-term debt and upcoming operational expenses. Form the above
table and graph it can be seen that the company has maintained a positive net
working capital.
Initially the company in the year 2012 was having small amount(Rs.37.48 millions)
of working capital which later on increased in the coming year. The company is
maintaining its working capital at Rs.137.91 millions at the end of FY2016 which is
approx. 4 times of 2012 working capital.
Table 5. Table showing Inventory turnover ratio of KMWPL
(Rs. In Millions)
4
7
Particulars 2012 2013 2014 2015 2016

COGS 2506.39 2308.81 3042.4 3111.1 2675.62
Avg. Stock 405.215 420.26 442.9 427.695 611.51
Inventory turnover ratio 6.19 5.49 6.87 7.27 4.38
INVENTORY TURNOVER RATIO

ITR
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2012 2013 2014 2015 2016
YEARS
Interpretation:
Inventory turnover ratio is an efficiency ratio that shows how effectively inventory is
managed by comparing cost of goods sold with average inventory for the period. This
measures how many times average inventory is turned or sold during a period.
4
8
The inventory turnover ratio of the company is maintained between 5.49 times to
7.27 times. The inventory turnover ratio of the company is 6.19 times in year 2012,
which has declined to 5.49 times in 2013,whereas the same happened in the year
2015where inventory turnover ratio is 7.67 which declined drastically to 4.38 in 2016
this may be because the sales level has fallen over these year and the average stock
of the company has almost remained the same and the stock in the year 2016 has
increased by margin of Rs. 200 million.
Table 6. Table showing Inventory conversion period of KMWPL
(Rs. In Millions)
Particulars 2012 2013 2014 2015 2016

Days 365 365 365 365 365
Inventory turnover 6.19 5.49 6.87 7.27 4.38
ratio(times)
Inventory conversion period 59 days 66 days 53 days 50 days 83d days
4
9
INVENTORY CONVERSION PERIOD

90 83
80
70 66
59 coversion
60 53 50 period
50
40
30
20
10
0
2012 2013 2014 2015 2016
Years
Interpretation:
Inventory conversion period reports us about the average time to convert our total
inventory into sales. It is relationship between total days in year and inventory
turnover ratio. Less inventory conversion period is better because more quickly, we
will convert our inventory into sales, there will be less chance of obsolescence and
paying of over-stocking cost.
From the above table we can interpret that the company has maintained the inventory
conversion period between 50days-66days expect in the year 2016 where is 83 days.
There has been a major fluctuation in 2016.
Table 7. Table showing Debtors turnover ratio of KMWPL
(Rs. In Millions)
5
0
Particulars 2012 2013 2014 2015 2016

Total sales(credit) 4219.50 4138.60 5200.43 5338.40 5202.02
Average debtors 619.94 696.58 730.24 812.57 789.16
Debtors turnover ratio 6.81 5.94 7.12 6.57 6.59
DEBTORS TURNOVER RATIO

DTR
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
5.80
5.60
5.40
5.20
2012 2013 2014 2015 2016
Years
Interpretation:
Debtors turnover ratio measures company’s efficiency in collecting its sales on
credit and collection policies. A high receivables turnover ratio implies either that
the company operates on a cash basis, it may also indicate that the company’s
collection of accounts receivables is efficient, and that the company has a high
proportion of quality customers that pay off their debts quickly.
5
1
The company’s debtors turnover ratio was 6.81 times in 2012 which dropped down
to 5.94 times. This may be because the sales have not shown any significant growth
over these years while the average debtors have grown from 619.94 million to
696.565 million. Debtors turnover ratio has again increased to 7.21 in 2014 due to
increase in sales. In 2015 and 2016 the debtors turnover ratio has decreased to 6.57
respectively and 6.59 because the sales have increased only by few margin while
the debtors have increased by a higher margin.
Table 8. Table showing Average collection period of KMWPL
(Rs. In Millions)
Particulars 2012 2013 2014 2015 2016

Days 365 365 365 365 365
Debtors turnover ratio 6.81 5.94 7.12 6.57 6.59
Average collection period 54 days 61 days 51 days 56 days 55 days
5
2
AVERAGE COLLECTION PERIOD

64
61
62
60
58
56 55
56 Collection
54
54 period
52 51
50
48
46
2012 2013 2014 2015 2016
Years
Interpretation:
The average collection period is the average number of days between the date that a credit
sale is made and the date that the money is received from the customers.
Monitoring the average collection period is important for a company’s cash flow and
its ability to meet its obligations when they come due. The credit period offered by
company is 60-90 days.
From the above table and graph it can be seen that the average collection period of
the company is between 51 days to 61 days which is less than the credit term given by
the company which means that the company is timely receiving money from its
customers.
Table 9. Table showing Working capital turnover ratio of KMWPL
(Rs. In Millions)
Particulars 2012 2013 2014 2015 2016
5
3
Total sales 4219.50 4138.60 5200.43 5338.40 5202.20

Net working capital 37.46 159.03 211.33 130.9 137.91
Working capital turnover ratio 112.58 26.02 27.04 40.78 37.72
WORKING CAPITAL TURNOVER RATIO

120.00
100.00
80.00
60.00
WCTR
40.00
20.00
0.00
2012 2013 2014 2015 2016
Years
Interpretation:
The working capital ratio measures how well a company is utilizing its working
capital to support a given level of sales. A high turnover ratio indicates that the
management is being extremely efficient in using a firm’s short-term assets and
liabilities to support sales. Conversely, a low ratio indicates that a business is
investing in too many accounts receivables and inventory assets to support its sales,
which could eventually lead to the bad debts and obsolete inventory.
5
4
FINDINGS OF THE DATA
5
5
 Working capital of Kalyani Maxion Wheels Pvt. Ltd. is positive for all the
years. It increased by Rs. 121.55 millions and Rs. 33.26 millions in year 2013
and 2014. The working capital showed the decrease in the year 2015 by Rs.
61.39 million and a slight increase in the year 2016.
 The current ratio of Kalyani Maxion Wheels Pvt. Ltd. is above 1 for all the
years of study while the liquid ratio is below 1 for all these years.
 Inventory turnover ratio of Kalyani Maxion Wheels Pvt. Ltd. is between 4.38
times to 7.27 times (2012-2016). There have been no major fluctuations in
inventory turnover ratio.
 The current assets of Kalyani Maxion Wheels Pvt. Ltd. show an increase every
year.
5
6
 Inventory conversion period of Kalyani Maxion Wheels Pvt. Ltd. between
50days to 83 days (2012-2016). The inventory conversion period has been
increased to 83 days in 2016 from that of 50 days in 2015 due to the reason of
price increase in steel from January onwards because of which the company
stocked the steel in bulk.
 Debtors turnover ratio of Kalyani Maxion Wheels Pvt. Ltd. is between 5.94
times to 7.12 times (2012-2016). Debtors turnover ratio has reduced to 6.59
times in 2016 from 7.12 in 2014 which means that the efficiency of company
in collecting its accounts receivables has reduced.
 Average collection period of Kalyani Maxion WheelsPvt. Ltd. is ranging from
51 days to 61 days. The average collection period for all the years is below the
time given by the company to its debtors which is a good sign.
5
7
SUGGESTIONS
 Working Capital of the company is positive for all the years which is a good
sign for the company. It has to maintain it further, to run the business long
term.
 Company should have the increase in payback period to vendor and supplier.
 The inventory turnover ratio for KMWPL has been a success story for the last
couple of years so the management should do everything possible thing t
maintain this inclination in the coming years and try to encourage its human
resources to keep up the good work.
 If there are credit purchase and credit sale within the same company advising
a net off payment at a define interval can help reduce the debtors amount.
5
8
CONCLUSION
1. The Working capital position of the company is sound and the various sources
through which it is funded and optimal.
2. The various ratios calculated are on indicator as to the fact that the profitability of
the firm and sales are on a rise and also the deletion of the inefficiencies in the
working capital management.
3. The company has used its purchasing financing and investment decisions to good
effect can be seen from the inferences made earlier in the project.
4. Average collection period of the company is also in the line with normal credit
term offered by the company. This means company receiving payment from the
customer timely.
REFERENCES
1. https://www.ibef.org/industry/autocomponents-india.aspx
5
9
2. https://www.netscribes.com/global-automotive-industry/
3. http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20pages/Working%20ca
pital%20management.aspx
4. http://www.bdc.ca/en/articles-tools/money-finance/managefinances/pages/financial-
ratios.aspx
5. http://www.bbt.com/business/small-business-resourse-center/growing-
abusiness/financial-ratios.page
6. http://academic.regis.edu/dbush/finance/financial%20statement%20analysis/
working_capital_management_ratios.htm
7. ICWA module on working capital.
8. www.mckinsey.com/~/media/mckinsey/dotcom/client_service/automotive%
20and%20assembly/pdfs/mck_the_road_to_2020_and_beyond.ashx global automotive
industry analysis
6
0

ANANT KUMAR Main Report

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

ANANT KUMAR Main Report

Caricato da

Copyright:

Formati disponibili

ANALYSIS OF WORKING CAPITAL MANAGEMENT OF KMWPL

This is to certify that MR. ANANT KUMAR who is bonafide student of

“Analysis of Working Capital Management in KMWPL” and has successfully

Internal Guide Director, DIMR

I, ANANT KUMAR, student of DNYANSAGAR INSTITUTE OF MANAGEMENT

Date: June 30,2017 ANANT KUMAR

Sr. No. Table of Contents Page No.

2. Industry Profile 2-7

3. Company Profile 8-14

5. Objective and Scope 25

6. Research Methodology 26-27

8. Limitation of the Study 29

9. Literature Review 30-32

10. Analysis and Interpretation 33-44

11. Findings of the data 45-46

A Study of Working Capital Management (WCM) of Kalyani Maxion Wheels Pvt.

Working capital is primarily concerned with inventories management, receivable

(ACMA), the Indian auto-components industry is expected to register a turnover of

Auto Ancillary Industry

Transmission & Suspensions &

Engine valves Body and

Power train Other panel

The road ahead

KALYANI MAXION WHEELS PVT. LTD.

Hub piloted tubeless Wheels Wide base tubeless Wheels

Stud piloted tubeless Wheels Military Wheels

VISION OF THE COMPANY

Be a Premier Automotive Supplier:

Grow by Satisfying Customers:

We maximize continuous improvement, quality, technology, innovation and

Have the Best People:

TECHNOLOGY USED IN THE COMPANY

 Compression moulding of rim which ensures the butt

WORKING CAPITAL MANAGEMENT

Working Capital may be classified in two ways: a)

Concepts of working capital

2. Net Working Capital:

4. Temporary Working Capital: The amount of such working capital keeps

Importance of working capital management

The balancing act: Profitability Vs Liquidity

Elements of working capital

• The attitude of management to risk

Permanent or fluctuating current assets

The attitude of management to risk: aggressive, conservative and matching funding

Calculation of the cash operating cycle

Factors affecting the length of the operating cycle Length

• liquidity versus profitability decisions

Working capital ratios

Inventory holding period

= Raw material inventory x 365 .

WIP holding period

Finished goods inventory period

Trade receivables days

Trade payable days

Working capital liquidity ratios Two

Quick (acid test) ratio

Working capital turnover

• To understand the concept of working capital management and its importance.

• To study the sources and uses of the working capital.

Time period of the study:

MS-Excel has been used for calculations.

LIMITATIONS OF THE STUDY

2. The research done by, Thachappilly G., “Working Capital Management

4. Impact of Working Capital Management Policies on Corporate Performance -