See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/256012054

Working Capital Management in Mahindra & Mahindra Ltd

Article · January 2008

CITATIONS READS
0 8,640

1 author:

Sankar Thappa
Rajiv Gandhi University
14 PUBLICATIONS 16 CITATIONS

SEE PROFILE

All content following this page was uploaded by Sankar Thappa on 13 July 2019.

The user has requested enhancement of the downloaded file.

 1

WORKING CAPITAL MANAGEMENT

IN

MAHINDRA & MAHINDRA LTD.

BY

SANKAR THAPPA
LECTURER
DEPARTMENT OF BUSINESS MANAGEMENT
NORTH EASTERN REGIONAL INSTITUE OF
MANAGEMENT
OPP. AIDC, NABIN NAGAR, R. G. BARUAH ROAD
GUWAHATI-781024,ASSAM
 2

WORKING CAPITAL MANAGEMENT IN MAHINDRA &

MAHINDRA LTD. -A CASE STUDY

n SANKAR THAPPA

ABSTRACT

Working capital is the lifeblood of the business organization. Merely having

the investment in fixed assets does not determine the success of a business
organization it is also important to have efficient management of working
capital. The objective of working capital management is to maintain a
satisfactory level of working capital through the management of current
assets and current liabilities. If a satisfactory level of working capital is not
maintained the organization is likely to become insolvent and may even be
forced to bankruptcy. Therefore, for the smooth running of the business
efficient management of working capital is required.

This paper highlights on concepts of working capital, working capital

policy, component of working capital and factors affecting working
capital of Mahindra & Mahindra Ltd during last seven years and
identify which factors are responsible for the improvement of working
capital of the company.
 3

WORKING CAPITAL MANAGEMENT IN MAHINDRA &

MAHINDRA LTD. – A CASE STUDY
- SANKAR THAPPA

Working Capital Management is the lifeblood of a business. Just as circulation of blood

is essential in the human body for maintaining life, working capital is essential to
maintain the smooth running of business. No business can run successfully without an
adequate amount of working capital. Working capital refers to a firm’s investment in
short term assets. Working capital can also be regarded as that portion of the firm’s total
capital, which is employed in current operations. It refers to all aspects of current assets
and current liabilities. Current assets are those assets, which in the ordinary course of
business can be or will be converted into cash within one year without undergoing a
diminution in value and without disrupting the operations of the firm. The major current
assets are, cash, marketable securities, accounts receivables and inventory. Current
liabilities are those liabilities, which are intended at their inception to be paid in the
ordinary course of business within a year out of the current assets or earnings of the
concern. The basic current liabilities are: accounts payable, Bills payable, Bank overdraft,
and outstanding expenses.

The movement of fund s from working capital to income and profits and back to working
capital is one of the most important characteristics of business. This cyclical operation is
concerned with utilization of funds with the hope that they will return with an additional
amount called income. If the operations of a company are to run smoothly a proper
relationship between fixed capital and current capital has to be maintained.

Sufficient liquidity is important and must be achieved and maintained to provide the
funds to pay off obligations as they arise or mature. The adequacy of cash and other
current assets together with their efficient handling virtually determine the survival or
demise of the company. A businessman should be able to judge the accurate requirement
of working capital and should be quick enough to raise the required fund to finance the
working capital needs.

Because if its close relationship with day to day operations the management of working
capital is very important for a business firm. It is being increasingly realized that
inadequacy or mismanagement of working capital is the leading cause of business
failures. Neglect of management of working capital may result in technical insolvency
and even liquidation of a business unit. Inefficient working capital management may
cause either inadequate or excessive working capital, which is dangerous.
 4

Working capital management is concerned with the management of firm’s current

accounts, which include current assets and current liabilities. The goal of working capital
management is to manage the current assets and current liabilities of a firm in such a way
that a satisfactory level of working capital is maintained i.e. it is neither inadequate nor
excessive. This is so because both inadequate as well as excessive working capital
position are bad for any business. Inadequacy of working capital may lead the firm to
insolvency and excessive working capital implies idle funds, which earn no profits for the
business.
In this article , a modest effort has been made to analyse the working capital management
of Mahindra & Mahindra Ltd. during the period of 1998-99 to 2004-05.

Profile of the company: Mahindra & Mahindra Ltd (M & M) is the flagship company of
around us$ 2.5 billion, Mahindra Group, which has a significant presence in key sectors
of the Indian economy. A consistently high performer M& M is one of the most reputed
company in the country.
Set up in 1945 to make general-purpose utility vehicle for the Indian market M&M soon
branched out into manufacturing agricultural tractors and Light commercial vehicles
(LCVs).
M&M has two main operating divisions:
(i) The automobile division manufactures utility vehicles, light commercial
vehicles, and three wheelers
(ii) The tractor (farm equipment) division makes agricultural tractors and
implements that are used in conjunction with tractors, and has also
ventured into manufacturing industrial engine. The tractor division has
won the coveted Deeming Application Prize 2003 making it the only
tractor manufacturing company in the world to secure the prize.

The turnover of M&M in 2004-05 is Rs.7804 crores and Net profit is Rs.513 Crore. At
present M&M is largest company in producing LCV in the country and world’s 4th
largest tractor maker. The M&M has also joint ventures in USA, Italy, Serbia, Russia,
Uruguay, South Africa, West Asia, China, Australia, and SAARC Countries.
M&M has employees around 11500 people and has six state of the art manufacturing
facilities spread over 5lacs square kilometer. It has a network of over 780 dealers across
the country.
 5

Objectives of the study:

(i) To assess significance of working capital by selecting few importance

parameters such as working capital ratio, Acid test Ratio, current assets to
Total assets ratio, total assets to sales ratio, inventory turnover ratio, age of
inventory, debtors turnover ratio, and average collection period etc.
(ii) To make item wise analysis of the elements or component of working capital
to identify the items responsible for changes in working capital.
(iii) To study liquidity position of the company by taking four measures at time
namely, inventory, to current assets, debtors to current assets, cash and bank to
current assets and loan and advances and other current assets to current assets.

Scope and limitation of the study:

(i) The study is limited to seven years (1998-99 to 2004-05) performance of the
company.
(ii) The data used in this study have been taken from published annual reports
only. As per the requirement and necessity some data are grouped and sub
grouped.
(iii) For making a clear-cut opinion ratio technique of financial management has
been used.

Data and methodology of the study:

The data of Mahindra & Mahindra for the years (1998-99 to 2004-05) used in this study
have been taken from secondary sources e.g. published annual report of the company.
Editing classification and tabulation of the financial data, which are collected from the
above mentioned sources, have been done as per the requirement of the study. For
assessing performance of the working capital position in this study the technique of ratio
analysis have been used. The collected data have been analyzed in the following way:

(i) Analysis of liquidity Ratio

(ii) Analysis of liquidity position.
(iii) Item wise analysis of component of gross working capital
(iv) Liquidity ranking.

For assessing the behavior of ratios, statistical techniques have been also used e.g. mean,
growth rate, standard deviation and co-efficient of variation in this study.
 6

FINDINGS AND ANALYSIS:

Current Ratio : The current ratio is calculated by dividing current assets by current
liabilities . Current assets mean all those assets, which are convertible into cash within a
year, such as marketable securities, debtors, stock, cash, bank, and prepaid expenses.
Current liabilities included the obligation maturing within a year like creditors, Bills
payable, outstanding expenses, bank overdraft, and income tax liability. The current ratio
is thus measure of short-term solvency. It indicates the availability of current assets in
rupees for every one rupees of current liability. A ratio of greater than one means that the
firm has more current assets than current claims against it. Ideal of current ratio is 2:1 in
normal condition.
As per table I current ratio of Mahindra & Mahindra only in 1998-99 is
2.11: 1. In all the years it is less than 2:1. So it shows that the company does not have
sufficient current assets to meet current liabilities as per the standards. Overall average
1.63 which is below 2:1, this is not satisfactory so far as the standard is concerned.
It does not show sound working capital position during the study period.

Liquid ratio: Liquid ratio or quick ratio or acid test ratio is more rigorous test to liquidity
than the current ratio. The term ‘liquidity’ refers to the ability of firm to pay its short-
term obligation as and when they become due. The two determinant of current ratio is
current assets and current liabilities. Current assets include inventories and prepaid
expenses, which are not easily convertible into cash within a short period. Quick ratio
may be defined as the relationship quick assets and current liabilities. An asset is said to
be liquid if it can be converted into cash within short period without loss of value. In that
sense cash in hand and cash at bank are most liquid assets. Ideal ratio is 1:1.

As per table I acid test ratio is in satisfactory position. Ratio is always ahead than ideal
position 1:1 except in the year 2003-04(0.76) and 2004-05 (0.89). Highest ratio during
the study period is 1.27 in 1999-2000 and lowest in 2003-04 is 0.76. Average of the acid
test ratio is 1.10. In the last few years it has been decreased due to increases share of
inventory. The average ratio is 1.10, which is greater than the standard 1:1. This shows
that the liquidity position of the company is satisfactory.

Absolute liquid ratio: Although receivables, debtors and bills receivables are generally
more liquid than inventories yet there may be doubts regarding their realization into cash
immediately or in time. Hence some authorities are of opinion that the absolute liquid
ratio should also be calculated together with current ratio and acid test ratio so as to
exclude even receivables from the current assets and find out the absolute liquid ratio.
Absolute liquid assets included cash in hand and cash at bank and marketable securities.
The acceptable norm for this ratio is 0.5:1 pr 1:2.

As per the table I absolute liquid ratio fluctuated from 0.16 to 0.37 during the study
period. It is nearest to .30 in the first two years and in 2004-05. It’s average is 0.25 which
is lower than the standard; this shows that the company does not maintain sufficient
absolute liquid assets.
 7

Inventory turnover ratio: Inventory turnover ratio establishes relationship between the
cost of goods sold with average stock. This ratio measures the velocity of conversion of
stock into sales. Usually a high inventory turnover indicates efficient management of
inventory because more frequently the stocks are sold the lesser amount of money is
required to finance inventory. A low inventory turnover ratio indicates an inefficient
management of inventory over investment in inventory, sluggish business, poor quality of
goods and lower profit as compared to total investment. A high inventory turnover may
be the result of a very low level of inventory which result in shortage of goods in relation
to demand and a position of stock or the turnover may be high due to a conservative
methods of valuing inventories at lower value or the policy of the being to buy frequently
in small lot.

As per table I inventory turnover ratio fluctuated during the study period. It is in 1998-
99, 8.46 times, in 1999-2000,9.01times, in 2000-01 7.99 times, in 2001-02 7.61 times, in
2002-03 7.92 times, in 2003-04 10.22 times and in 2004-05 10.37 times. It decreased
from 8.46 times to 7.61 times during the time period 1998-99 to 2001-02, which shows
that during this period the inventory as compared to sales, was not satisfactory. But
from2002-03 onwards it started increasing and has gone to 10.37 times in 2004-05, which
shows that the management started controlling the inventory and increases sales, it will
improve the liquidity position.

Age Of Inventory: Age of inventory indicates duration of inventory in organization. It

shows moving position of inventory during the year. If age of inventory is minimum it
means companies activity position is satisfactory, they are able to sell their product
within shorter period of time which indicate sound liquidity position of organization. On
the other if age of inventory is too high it indicate slow moving of stock due to lower
demand of product or excessive production by company, due to stocking policy, which
affected directly liquidity position of company. Inventory is one of the major items in
current assets, which shows investment of working capital in stock.

As per table I age of inventory shows improving trend during the last years of the study
period. It increased from 40days(1999-2000) to 47days(2001-02) and decreased from
47days(2002-03) to 35days(2004-05). This shows that the company improved its
management of inventory, which has a positive impact on working capital management.

Debtors Turnover Ratio: Debtors turnover ratio indicates the velocity of debt collection
of the firm. In simple words, it indicates the number of times the debtors are turned over
during a year. Generally the higher value of debtors’ turnover the more efficient is the
management of debtors or more liquid are the debtors. Similarly low debtor turnover
implies inefficient management of debtors and lessLiquid debtors. But a precaution is
needed while interpreting a very high ratio may imply a firm’s in ability due to lack of
resources to sale on credit thereby losing sales to profits. There is no rule of thumb,
which may be used as a norm to interpret the ratio, as it may be different from firm to
firm depending upon the nature of business. This ratio should be compared with ratio of
 8

other firm doing similar business and a trend may also be making a better interpretation
of the ratio.
As per table I it indicates that debtors turnover ratio was in the 1998-99, 7.26 in 1999-
2000,8.14 times in 2000-01 7.80 times in 2001-02, 6.07 times in 2002-03,6.30times in
2003-04, 10.62 times in2004-05, 14.32 times. It is clear that during the study period it has
been increased in the last years of study period. It shows the improvement in the
efficiency of management of debtors of the company.

Average collection period: The average collection period represents the average number
of days, for which a firm has to wait before their receivables are converted into cash. It
measures the quality of debtors. Generally shorter the average collection period the better
is the quality of debtors as a short collection period implies quick payment by debtors.
Similarly, a higher collection period implies as inefficient collection performance, which
in turn adversely affects the liquidity or short term paying capacity of a firm out of its
current liabilities. Moreover longer the average collection period, larger is the chance of
bad debts. But a precaution is needed while interpreting a very short collection period
because a very low collection period may imply a firm’s conservative policy to sale on
credit to its customers and thereby losing sales and profit.

As per table I average collection period had been increased from 44days(1999-2000) to
59 days (2001-02) but after that it had been decreased to 25 days in the year 2004-05. It
indicates that the company properly collects its receivables during last years of the study.
It shows the improvement in the efficiency of management of collection policy.

Working capital turnover ratios. Working capital of a concern is directly related to

sales. The current assets like debtors, bills receivables, cash, stock changed with the
increase or decrease in sales. The working capital is taken as working capital= current
assets – current liabilities. This ratio measures the efficiency with which the working
capital is being used by a firm. A higher ratio indicates efficient utilization of working
capital and a low ratio indicates otherwise. But a very high working capital turnover ratio
is not a good situation for any firm and hence care must be taken while interpreting the
ratio.

As per table I, working capital turnover ratio of Mahindra & Mahindra fluctuated during
the study period. Minimum ratio is 4.18 in 1998-99 and Maximum ratio is 11.55 in2004-
05 with over all average is 9.22 times during the study period. It indicates the
improvement in the working capital of the company.

Current assets to total assets ratio: This ratio express the relationship between the
amount of current assets and the amount of investment in total assets. It helps to assess
the importance of current assets of a concern.

As per table I it is clear that on an average near about 3/5 of the total assets of the
company i.e60% are current assets. It indicates that during the period of the study the
 9

major portion of the total investment of the company has been made for working capital
purpose. Table I shows that current assets to total assets in the year 1998-99 ,.68 in 1999-
2000,.56 in 2000-01, .54 in 2001-02 ,.60 in 2002-03,.56 ,in 2003-04,055 and in2004-
05,.71 times . Which shows that portion of current assets to total assets is regularly
increasing since 1999-2000.

Current Assets to sales ratio: This ratio indicates the efficiency with which working
capital turns into sales. A lower ratio implies by and large a more efficient use of funds.
Thus a high turnover rate indicates reduced lock up of fund in working capital. An
analysis of current assets to sales ratio over a period of time shows the overall efficiency
of working capital management of a firm.

As per table-I in 1998-99 -.46 times, in1999-2000, .39times,in 2000-01,40times

In 2001-02,.45times,in 2002-03,.44times ,in2003-04,.31times and in2004-05,.35times
with overall average of 0.40 times . It decreases in last years of study, which is positive
from efficiency point of time.

Liquidity Position of Mahindra & Mahindra Ltd.: Liquidity refers to the ability of the
concern to meet its current obligations as and when these become due. If current assets
can pay off current liabilities then liquidity position is satisfactory and other wise vice
versa. The liquidity position of Mahindra & Mahindra Ltd. is analysed in table-II .

It is observed that current assets had been increased from Rs. 183285 lacs to
Rs.231738 lacs between 1998-99 to 2004-05. Mean of current assets is Rs.176759 lacs
with a growth rate of 26.44% with standard deviation of Rs24380 lacs and co-efficient of
.14 which shows slow growth of current assets during the years.

Liquid assets have increase from Rs.109588 lacs to Rs. 155755 lacs during the period of
1998-99 to 2004-05. Mean of liquid assets is Rs.119754 lacs with a growth rate of
42.13%. Standard deviation is Rs.16383 lacs and co-efficient of variation is .14, which
shows a mediocre growth of liquid assets during the study period.

Current liabilities had been increased with a growth rate of 101.29% during the study
period from Rs.87027 lacs to Rs.175180 lacs. Overall average during the study period is
Rs112882 Lacs, Standard Deviation is Rs28955 and coefficient of variation is .26, which
is greater than the growth of current assets and liquid assets.

Working capital of Mahindra & Mahindra Ltd. had been decreased from Rs.96258 lacs
to Rs.56558 lacs between 1998-99 to 2004-05. Working capital registered a decline of
41.24%. Working capital decreases to such an extent because of higher increase in the
current liabilities as compared to current assets. It indicates that working capital had been
decreased during the study period, which is not a good sign for the company.
 10

Compositions of Gross Working Capital :

An element wise analysis of gross working capital enables one to examine in which
element the gross working capital funds are locked up and to find put the factors
responsible for the significant changes in working capital in different years. In the Table-
III the share of each element has been calculated in percentage separately for each of the
years under study and the average share percentage for all years has been also
calculated. Out of the four elements namely debtors contributed highest in Working
capital from32.30% to 22.07% between 1998-99 to2004-05 with an average of 30.73%.
Where as the inventory contributes the second highest portion 23.84% to 32.79%
between 1998-99 to 2004-05 with an average of 29.79% towards the working capital.
During the period of study a remarkable change in share of different elements of Working
capital. The loan and advances fluctuated from 25.95% to 18.11% between 1998-99 to
2004-05 and it played third position in total current assets. The share of cash and bank
fluctuated from 27.22% to 15.80%.

“ In a comfortably financed business cash and bank will probably run not less than 5% to
10% of current assets. Since the current liabilities are not expected exceed half of the
current assets.” The cash percentage should run not under 10% to 20% of the same.

Table-III shows that the company not maintained necessary cash and bank balance
during study period except in 2004-05. This definitely affects adversely the profitability
of the company.

Liquidity Ranking: The liquidity position of a firm is largely affected by the

composition of working capital in as much as any considerable shifts from the relatively
more current assets to the relatively less current assets or vice-versa will materially
affects a firms ability to pay its current debts promptly.

Therefore to determine the liquidity position of the company more precisely a

comprehensive test has been done in Table IV. A process of ranking has been used to
arrive at a more comprehensive measure of liquidity in which four factors – namely
inventory to current assets ratio, debtors to current assets ratio, cash and bank to current
assets ratio and loan land advances to current assets ratio, have been combined in a points
score.. In case of debtors to current assets, cash and bank to current assets ratio, loan and
advances to current assets ratio a high value indicates relatively favorable position and
ranking has been done in that order. On the other hand a low inventory to current assets
ratio shows a more favorable position and hence ranking has been done in that order.
Ultimate ranking has been done on the principle that the lower points scored the more
favorable is the liquidity position.

Table- IV shows that the year 1998-99 registered the most liquidity position and was
followed by 2001-02.
The fluctuation in the liquidity position over different year’s of the period of the study
may be a point for investigation into the financial efforts of the concerns.
 11

CONCLUSIONS :

(i) From view point of conventional standard of working capital ratio, acid test
ratio, absolute test ratio, the short term liquidity is not very much satisfactory.
(ii) The mean percentage of current assets to total assets which is .61times
Which shows higher investment in current assets.
(iii) Age of inventory decreases, but the inventory as compared to sales is not
satisfactory so it should be controlled.
(iv) Age of debtor’s decreases, but still it requires further improvement.
(v) The element wise analysis of working capital reveals that Debtors constitute
32.30% to 22.70% of gross working capital, inventory constitutes 23.80% to
32.79% of gross working capital, Loan and Advances constitute 25.95% to
18.11% of gross working capital, cash and Bank constitute 17.49% to 27.22%
of the gross working capital. Contribution of Debtors and Inventory are
highest throughout the period of study.

In this study it is clear that the overall position of working capital of Mahindra&
Mahindra is not satisfactory.
There is an immediate need of improvement in debtors and inventory. Because the
Debtors and Inventory are not properly utilized by Mahindra & Mahindra ltd. during the
study period. In Mahindra & Mahindra Ltd the major portions of current assets are in the
form of Debtors and inventory. Whereas other current assets are properly utilized and
maintained. The liquidity position mainly depends upon debtors and inventory but other
components like loan and advances, cash and bank balances etc are also responsible. But
in this study we found that there is an immediate improvement in debtors and inventory.
The management of Mahindra & Mahindra ltd should try to properly utilization of
debtors and inventory and also try to maintain the debtors and inventory as per their
requirements so that liquidity will not be interrupted.
 12

Table-I Selected Liquidity Ratios of MAHINDRA & MAHINDRA LTD.(1998-99 to

2004-05)

Current
Working Assets To Current
Absolute Inventory Debtors Average capital Total Assets To
Current Liquid Liquid turnover, Age of turnover Collection Turnover Assets Total sales
Year Ratio Ratio Ratio Ratio Inventory Ratio Period Ratio Ratio Ratio
1998-99 2.11 1.26 0.37 8.46 43 7.26 50 4.18 0.68 0.46
1999-2000 1.84 1.27 0.29 9.01 40 8.14 44 5.64 0.56 0.39
2000-2001 1.85 1.25 0.16 7.99 45 7.8 46 5.42 0.54 0.4
2001-2002 1.65 1.2 0.18 7.61 47 6.07 59 5.7 0.6 0.45
2002-2003 1.47 1.06 0.22 7.92 45 6.3 57 7.07 0.56 0.44
2003-2004 1.15 0.76 0.18 10.22 35 10.65 34 24.97 0.55 0.31
2004-2005 1.32 0.89 0.36 10.37 35 14.32 25 11.55 0.71 0.35
Mean 1.63 1.10 0.25 8.80 41.43 8.65 45.00 9.22 0.60 0.40

Source: Compiled from annual reports of Mahindra & Mahidra Ltd.(from 1998-99 to
2004-05)

Table-II Liquidity Position of MAHINDRA & MAHINDRA LTD.(1998-99 to 2004-

05)
(Rs. In Lacs)
Year Current Liquid Current Working Increase/decrease
Assets Assets liabilities capital
1998-99 183285 109588 87027 96258 --
1999-2000 166085 114531 90021 76064 20194
2000-01 171365 116112 92704 78661 2597
2001-02 173237 126333 105074 68162 -10499
2002-03 161348 115673 109478 51870 -16292
2003-04 150257 100287 130687 19569 -32301
2004-05 231738 155755 175180 56558 36989
Mean 176759 119754 112882 63877
Growth Rate 0.26 1.01 0.42 -0.41
S.D. 24380 16383 28955 22662
C.V. 0.14 0.14 0.26 0.35

Source : Compiled from annual reports of Mahindra & Mahidra Ltd.(from 1998-99 to
2004-05)
 13

Table-III Component of working capital with respective percentage of Mahindra &

Mahidra Ltd. (from 1998-99 to 2004-05)

Inventory Debtors Cash & Loan &

Year To Current To Bank Advances To
Assets Current To Current Current Assets
Assets Assets
1998-99 23.84 % 32.30 % 17.49 % 25.95 %
1999-2000 31.04 % 27.79 % 15.98 % 24.78 %
2000-01 32.24 % 36.88 % 8.44 % 22.14 %
2001-02 27.08 % 37.39 % 11.00 % 24.34 %
2002-03 28.31 % 32.05 % 14.93 % 24.52 %
2003-04 33.25 % 26.65 % 15.53 % 24.28 %
2004-05 32.79 % 22.07 % 27.22 % 18.11 %
Mean 29.79 % 30.73 % 15.80 % 23.45 %

Source: Compiled from annual reports of Mahindra & Mahidra Ltd.(from 1998-99 to
2004-05)

Table- IV Statement of Ranking in order of Liquidity of Mahindra & Mahidra Ltd.(from

1998-99 to 2004-05)

Inventory Debtors Cash & Loan & Liquidity Rank Total Ultimate
Year To Current To Bank Advances To Rank Rank
Assets Current To Current Current
Assets Assets Assets

1 2 3 4 1 2 3 4
1998-99 23.84 % 32.30 % 17.49 % 25.95 % 1 3 2 1 7 1
1999-2000 31.04 % 27.79 % 15.98 % 24.78 % 4 5 3 2 14 3
2000-01 32.24 % 36.88 % 8.44 % 22.14 % 5 2 7 6 20 5
2001-02 27.08 % 37.39 % 11.00 % 24.34 % 2 1 6 4 13 2
2002-03 28.31 % 32.05 % 14.93 % 24.52 % 3 4 5 3 15 4
2003-04 33.25 % 26.65 % 15.53 % 24.28 % 7 6 4 5 22 7
2004-05 32.79 % 22.07 % 27.22 % 18.11 % 6 7 1 7 21 6

Source : Compiled from annual reports of Mahindra & Mahidra Ltd.(from 1998-99 to
2004-05)
 14

References:

1. B.Banerjee : “Cash management : A Practical approach”, The world press

Pvt. Ltd. 1982,
2. Debasish Sur: “ Working Capital Management in Colgate
Palmolive(India) Ltd.- a case study, The Management
Accountant,November,1997
3. I.M.Pandey :Financial Management Theory and practice,9th
edition,Vikash Publishing House,New Delhi ,(2005)
4. Khan & jain : Financial Management ,4th editionTata Mcgraw Hill
Publishing Co. New Delhi(2004)
5. Nitin Balwani : “ Accounting and Finance for Managers” Amexcel
Publisher ‘s Pvt ltd,(2000)
6. V. K. Bhalla: “ Working capital Management”,5th edition, Anmol
Publication New Delhi, (2003)
7. Van Horne James C.Wachowiz: “ Fundamentals of Financial
Management’’ 9th edition, Prentice Hall Inc. New Delhi(1998)
8. P.Chandra : “ Financial Management
9. Prasanna Chandra: “Financial Management- Theory and Practice’,6th
edition,Tata Mcgraw Hill Publishing Co.Ltd. ,New Delhi(2004)
10. Satish B.Mathur: “Working Capital Management and Control: Principles
and Practice” 1st edition,New Age International Pvt. Ltd.,New
Delhi(2002)
11. Lawrence J.Gitman: “Principles of Managerial Finance” 5th
edition,Harper & Row Publishers New York,(1988)
12. Richard A Brealey ,Stewart C.Myers : “ Principles of Corporate Finance”
4th edition, Tata Mcgraw Hill Publishing Co. New Delhi(1996)
13. Ross ,Westerfield,Jordan: “Essentials of Corporate Finance”,Tata
McgrawHill Companies Inc.(1996)

View publication stats