CONTENTS

CHAPTER NO. 1 2 3 4 PARTICULARS Industry profile Company profile Research methodology Principles of working capital 4.1 Working capital management 4.2 Working capital cycle 4.2.1 Statement of working capital cycle of KPTL 4.3 Types of working capital 4.4 Determinants of working capital 4.5 Policies for financing current assets 4.5.1 Approaches used by KPTL 4.6 Calculation of working capital Inventory management 5.1 Nature of inventories 5.2 Need to hold Inventories 5.3 Objective of inventory management 5.4 Inventory management techniques 5.5 Reorder point 5.6 Inventory control system 5.7 Related details about KPTL Cash management 6.1 Cash management 6.2 Optimum cash balance under certainty: Baumols model 6.3 Optimum cash balance under uncertainty: The MillerOrr model 6.4 Evaluation of cash management performance 6.4.1 Cash to current assets ratio 6.4.2 Cash turnover ratio Working capital finance 7.1 Working capital finance 7.2 Credit monitoring assessment 7.2.1 MPBF 7.2.2 Drawing power 7.3 Fund based financing 7.4 Non fund based financing 7.4.1 Requirement of bank guarantee for KPTL Ratio analysis 8.1 Current ratio 8.2 Liquid or quick ratio PAGE NO. 1 10 33 37 38 40 41 43 45 48 52 53 54 55 55 55 56 57 57 58 58 59 60 62 64 65 66 68 69 70 71 73 74 80 86 88 89 90

8.3 Absolute liquid ratio 8.4 Inventory turnover ratio 8.5 Age of inventory 8.6 Average collection period 8.7 Working capital turnover ratio 8.8 Current assets to total assets ratio 8.9 Current assets to sales ratio 8.10 Selected liquid ratio of KPTL 8.11 Liquidity position of KPTL 8.12 Components of working capital respective percentage of KPTL 8.13 Liquidity Ranking of KPTL Conclusions and Recommendations

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