Indian Journal of Accounting (IJA) 126 ISSN: 0972-1479, September, 2016,
Financing Pattern and Utilization of Fixed Assets in Large Scale Paper Industry –
*Dr. shivaji Waghamare **Dr.Ravichandra Reddy
Procurement of funds from appropriate sources and deployment of those funds to the various priorities of assets are considered to be the prima facie requirement for achieving the objective of a corporate entity. Ultimate success depends on how efficiently assets are utilized over a period of time. Thus effective utilization of assets are considered to provide the basic foundation for survival and long term growth of a corporate entity. In a backdrop of such corporate destination, the present paper makes an attempt to judge the efficiency of some selected manufacturing industries in India in utilizing fixed assets, the highest income generating assets in the business, over a period of ten years. For this purpose eight manufacturing industries in India are selected covering a sample size of 3,268 companies. Fixed assets turnover ratio and percentage of fixed assets to the total assets along with some statistical measures have been employed in the study to judge the efficiency in utilizing fixed assets. Empirical evidences showed that majority of the sample could not utilize fixed assets in the effective manner during the period under review. Some suggestions are also laid down in the study for better utilization of fixed assets in future.
KEYWORDS: Fixed Assets Turnover, Utilization, Industry, Corporate Entity, Statistical Measures