A STUDY ON WORKING CAPITAL MANAGEMENT IN
TEXTILE INDUSTRY
Thesis submitted to Bharathiar University
for the award of the Degree of
DOCTOR OF PHILOSOPHY IN COMMERCE
By
Mrs. J. GAYATHRI
Under the supervision of
Dr. Mrs. RACHEL NANCY PHILIP M.Com., M.Phil., Ph.D.,
Principal, Tiruppur Kumaran College For Women,
Tiruppur – 641 687
DEPARTMENT OF COMMERCE
TIRUPPUR KUMARAN COLLEGE FOR WOMEN
(Affiliated to Bharathiar University)
(A unit of Tiruppur Co-operative Housing Society Ltd)
An ISO 9001:2008 Certified Institution
Tirupur – 641687
SEPTEMBER 2012
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CERTIFICATE
This is to certify that the thesis entitled “A STUDY ON WORKING CAPITAL
MANAGEMENT IN TEXTILE INDUSTRY” submitted to the Bharthiar University, in partial
fulfillment of the requirements for the award of the degree of DOCTOR OF PHILOSOPHY
IN COMMERCE is a record of original research work done by Mrs.J. GAYATHRI during
the period of her study in the Department of Commerce, Tiruppur Kumaran College for
Women, Tirupur. Under my supervision and guidance and that the thesis has not formed
the basis for the award of any Degree/Diploma/Associateship/Fellowship or other similar
title to any candidates of any University.
Countersigned Signature of the Guide
Principal
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DECLARATION
I J. GAYATHRI hereby declare that the thesis, entitled “A STUDY ON WORKING
CAPITAL MANAGEMENT IN TEXTILE INDUSTRY” submitted to the Bharathiar
University, in partial fulfillment of the requirements for the award of the degree of
Doctor of Philosophy in Commerce is a record of original and independent research
work done by me during 2006 - 2012 under the supervision and guidance of
Dr. RACHEL NANCY PHILIP, M.Com., M.Phil., Ph.D., Principal, Tiruppur Kumaran College
for women, Tirupur. And it has not formed the basis for the award of any Degree /
Diploma / Associate / Fellowship or the other similar title to any candidate of any
University.
Signature of the Candidate
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ACKNOWLEDGEMENT
First and foremost, I wish to thank God Almighty for having blessed me towards the
successful completion of my research work. I would like to express my special gratitude and
thanks to Thiru.M.S.M.Anandan, Minister of Hindu Religious & Charitable Endowments,
Correspondent / Chairman, Tiruppur Kumaran College For Women, Tirupur for having
given me an opportunity to be a part of this esteemed institution and to undertake this
research work.
I wish to express my deep sense of gratitude to my Guide, Dr. Mrs. Rachel Nancy
Philip, Principal, Tiruppur Kumaran College for Women, Tirupur, who had been a source
of inspiration and for her able guidance, constant supervision, providing necessary
information and useful suggestions regarding the project, which helped me in completing
the project work.
Words are inadequate in offering my thanks to Dr. M.Thiyagarajan, Professor,
Department of Commerce, Dr.SNS.Rajalakshmi College of Arts and Science for his
valuable assistance in the project work and support in analysing data.
My special thanks and appreciations also go to my colleagues at Tiruppur Kumaran
College in developing this project and to those people who have willingly helped me out
with their abilities. Your friendship is irreplaceable.
I do extent my sincere thanks to Sree Kumaran Computers for their final work.
Finally, yet importantly, I would like to express my heartfelt thanks to my beloved
parents for their blessings, my lovable husband, daughter and friends for their help,
co-operation and wishes for the successful completion of this project.
J.Gayathri
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ABBREVIATIONS
AM - Arithmetic Mean.
ATC - Agreement on Textiles and Clothing
AT&T - American Telephone & Telegraph
CA - Current Assets
CATR - Current Assets Turnover Ratio
CL - Current Liabilities
CLP - Capital Line Plus
CMIE - Centre for Monitoring Indian Economy
CR - Current Ratio
CSIR - Council of Scientific and Industrial Research
CTFC - Cotton Textiles Funds Committee
DOS - Days sales Outstanding.
DE - Debt Equity Ratio
DEA–DA - Data Envelopment Analysis–Discriminant Analysis.
DTR - Debtor Turnover Ratio
EBIT - Earnings Before Interest and Tax
EI - Efficiency Index
FPB - Forum for Private Business
GDP - Gross Domestic Product
GP - Gross Profit
HDMC - Hubli Dharwad Municipal Corporation
HPMC - Himachal Pradesh Horticulture Produce Marketing
and Processing Corporation.
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ICR - Interest Coverage Ratio
IT - Information Technology
ITR - Inventory Turnover Ratio
JSE - Johannesburg Stock Exchange
LEV - Leverage
LGR - Linear Growth Rate.
LR - Liquid Ratio
MVE - Market Value of Equity
NCEAR - National Council of applied Economic Research
NFATR - Net Fixed Assets Turnover Ratio
NP - Net Profit
NTC - Net Trade Cycle
NTT - Nippon Telegraph and Telephone
OP - Operating Profit
PBIT - Profit Before Interest and Tax
PI - Performance Index.
QR - Quick Ratio
ROCE - Return on Capital Employed
ROI - Return on Investment
RONW - Return on Net worth
ROTA - Return on Total Assets.
RMC - Raw Material Consumed
SIMA - South Indian Manufacturing Associations.
SITRA - South Indian Textile Research Associations.
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TA - Total Assets
TAR - Total Assets ratio
UI - Utilisation Index.
WC - Working Capital
WCM - Working Capital Management
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