1. Introduction
2. Working Capital Management: A Conceptual Framework
Operating Cycle Concept of Working Capital
Need for Working Capital
Importance of Working Capital Management
Decisions in Working Capital Management
Working Capital Investment Decision
Structure of Working Capital
Inventory
Receivables
Short-term Investments / Marketable Securities
Cash
Financing of Working Capital
Long-term Sources
Short-term Sources
3. Studies on Working Capital: Global and Indian Experiences
Studies on Working Capital Management Abroad
Studies on Working Capital Management in India
Studies on Determinants of Inventory Investment
4. Importance and Growth of Food-processing Industry
Tea Industry
Sugar Industry
Beverages Industry
Food-products Industry
Fruit and Vegetable Processing
Milk Products
Poultry and Meat Products
Fisheries
Grain Processing
Vanaspati and Edible Oils
Other Packaged Foods and Drinks
5. Size and Adequacy of Working Capital
Size of Working Capital
Investment in Current Assets
Investment in Current Assets as Percentage of
Total Net Assets
Investment in Current Assets Relative to Fixed Assets
Adequacy of Working Capital
Ratios based on Position Statement
Current Ratio
Quick Ratio
Ratio of Liquid Funds to Current Liabilities
Test of Comparative Liquidity
Ratios Based on Income Statement and Position Statement
Coverage of Current Liabilities Ratio
Net Cash Flows to Current Liabilities Ratio
Required Days to Recover Net Current Liabilities out of Funds From Operations
Conclusions
6. Structure and Utilisation of Working Capital
Structure of Working Capital
Inventory
Finished Goods
Raw Materials
Semi-finished Goods
Stores and Spares
Receivables
Marketable Securities
Cash
Utilisation of Investment in Working Capital
Utilisation of Investment in Inventory
Raw Materials Turnover
Semi-Finished Goods Turnover
Finished Goods Turnover
Stores and Spares Turnover
Utilisation of Investment in Receivables
Bad Debt Losses
Utilisation of Investment in Cash
Utilisation of Investment in Working Capital
Turnover of Working Capital
Operating Cycle
Conclusions
7. Financing of Working Capital
Dahejia Study Group
Tandon Study Group
Chore Working Group
Marathe Committee
Kannan Committee
Nature of Approach Used in Working Capital
Financing in Food-processing Industry in India
Relative Role of Long-term and Short-term
Funds in the Financing of Working Capital
Relative Proportions of Different Short-term
Funds in Financing of Working Capital
Internal Short-term Sources of Funds
External Short-term Sources of Funds
Trade Credit
Short-term Bank Credit
Commercial Paper
Conclusions
8. Factors Influencing Investment in Working Capital
Model Specification
Analysis of Results
Conclusions
9. Summary and Conclusions
Bibliography
Index