An empirical study on receivables management in cement sector in India

Working capital is considered to be life-giving force to an economic entity and managing the same is one of the most crucial and challenging aspect of the overall financial management. It is the management of the short term financing requirements of a firm which includes maintaining optimum balance of working capital components – Receivables, inventories, payables and cash. This paper represents an empirical analysis in which an attempt has been made to examine the Receivable Management of Indian Cement Industries with a data of 09 years. For the purpose of the study, secondary data is used and researcher has used 05 units as sample. For the purpose of analysis, researcher has used ratio techniques and to test hypothesis ANOVA technique has been applied. The result of the study shows that the average collection period across the sector was very less and the degree of investment in receivable as a percentage of sales was quite lower.