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Abstract

This indicates that long-term creditors stand at a risk. The company has slow moving stocks as indicated by its decreasing trend in stock turnover ratio. The working capital is efficiently utilized. Total assets also have been utilized properly. The management should improve the methods of collecting the receivables from debtors. The company should try to improve its efficiency regarding to the management of inventories. The average quick ratio is 2.23 times which is higher than the standard norm (1:1). Through out the study period the quick ratio has been increased from 1.92 in 2008-09 to 3.06 in 2012-13. It shows that the company is maintaining sufficient investments in current assets, which will reduce its profitability. The cash ratio is 0.13 in the year 2008-09 but in the year 2010-11 it has increased to 0.26. However it is below the standard norm .The company has failed in keeping sufficient cash and bank balances in current assets.

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