IMPACT OF RECEIVABLES MANAGEMENT ON WORKING CAPITAL AND PROFITABILITY: A STUDY ON TAMILNADU NEWS PRINT AND PAPERS LIMITED– CHENNAI

Receivable management on working capital management is very important due to its affect on risk and profitability of company and thus the value of the company. The study concentrates on the main components of working capital like inventory management, accounts receivable management and cash management of TNPL. The tools used in this study includes ratio analysis, trend analysis and percentage method. Even in a given industry, paper mills may have very different working capital needs, and it is therefore impossible to determine an overall optimal working capital level without considering a paper mills’s specific situation. As working capital spans over a wide range of different business activities, the parameters in the equation must be set in relation to the overall strategy and business model to determine the optimal level of working capital.