STUDY ON WORKING CAPITAL MANAGEMENT OF KPR MILLS LIMITED USING RELEVANT RATIOS.

Abstract

This study aims to find out the efficiency of working capital management of KPR MILLS LTD for the period of five years. Working capital management is an integral part of overall management of the company. The day to day operation of the company requires working capital. Working capital directly affects the liquidity and profitability of the firm. Indian textile industry covers 61% of the international market and 22% of global market. KPR Mill Limited is one of the largest vertically integrated apparel manufacturing companies producing yarn, knitted grey and dyed fabric and readymade garments in India. Knitted garments for men, women and children out of 100% Conventional cotton, organic cotton, cotton blends and fair trade cotton. According to the annual report 2009-2010 of the ministry of textiles the Indian textile industry constitutes 14% to industrial production, 4% to the country’s gross domestic product and 17% to the country export earnings. Ratio analysis is used to known the efficiency of working capital management.