Working Capital Management In Paper Industry

The text enclosed in the book consists of the working capital management in terms of exercising control over the three major components of working capital viz., Inventory, Accounts Receivables & Payables and Cash. Any firm of manufacturing nature should set norms in respect of the said components and concentrate up on the production processes in order to reduce the production cost. This requires special attention with regard to materials which form part of major chunk of total cost of production. The next step involves credit maintenance with regard to both debtors and creditors in order to have cushion effect in boosting purchases and sales to improve the margins of the company. The third being the liquidity maintenance with reference to cash and bank balances to gain the confidence of stake holders in judging its solvency position. However, while controlling cost composition the major factor that comes in the way is quality maintenance which requires utmost care to see that any measure initiated in management of working capital should not show any kind of negative impact on quality and quantity in order to hold its share in the highly competitive global market.