Management of Working Capital Components among Select Automobile Companies in India
This paper analyses the management of working capital components of select automobile companies in India. For this purpose two leading manufacturers of both passenger and commercial vehicles were selected such as, Tata motors limited and Mahindra and Mahindra limited. This study used secondary data for the study period of nine years from 2003-04 to 2011-12. This study used simple percentage and ratio for analyzing the data. It analysed inventory, receivables and payables and cash management separately. The study found efficient receivables and payables management by both the companies. The study found negative cash conversion cycle during all the years of the study period of both the companies, it was possible because very short debtors' collection period and inventory conversion period and long creditors' payment period. The study concluded that both the companies efficiently managed their working capital components.
Many believe that banks in China are seriously undercapitalised. However, what is a suitable standard for capital adequacy of these banks? Does the Basel Accord apply to them absolutely and sufficiently? This paper reviews the situation and regulation of the capital adequacy of state commercial banks in China. It finds that while government support is proved to be the invisible treasure of state banks, capital enhancement is always desired and the most practical method is to use subordinated debt to increase their supplementary capital.