Size and Components of Working Capital in selected Spinning Mills in South India

In a wide ranging study of southern Indian spinning mills, it is identified that the growth and development of the industry has a importance bearing on the overall development of the Indian economy. There is high growth potential which is supported by statistics. The strengths of the textile industry and its commendable export performance in the last decade are distinguished. Profitability, however, has been very low, though greater opportunities are expected under the WTO regime. The potentially feasible mills need to be supported. Gross working capital represents the commitment of funds in various components of currents, such as cash, short term securities receivables, pre- payments, shot term loans and advances in inventories. In this paper an attempt has been made to study the size and components of working capital in selected spinning mills in South India.