Bangladesh the performance of public sector enterprise In general and public sector leather industry in particular in terms of overall performance and profit is far from satisfactory. Deficiencies in working capital [current asset] management and capital investment decisions [fixed assets] have been found by the researchers. Current assets management Includes planning and control of a firm’s liquid researcher’s via-cash, marketable securities, and inventories.
On the other hand fixed asset management refers to the current outlay or series of outlays of cash resources n long-turn assets in return for an anticipated flow of future benefits. Asset management deals with activities as to how effectively the assets can be employed by the firm. In fact, the efficiency and performance of a firm depends to a large extent of the efficiency with which the assets are managed and utilized.
However, on perusal of existing literature on leather industry in Bangladesh it can be said that very little attention has so far been given to the impact of asset management on productivity of public sector leather Industry. It Is further asserted that although various concerned agencies like planners, policy makers, economists, researchers and academicians have recognized directly or indirectly poor state of management in the public sector leather industry of Bangladesh, so far our knowledge goes no study on Impact of poor asset management on productivity has yet been done.
This research gap motivated the author to undertake this study. Objectives of the Study The study focuses on the following objects – To identify the asset management efficiency criteria for the study purpose. To valuate the efficiency of asset management on the basis of the selected criteria. To find out the Impact of poor asset management on productivity of sample enterprises. To recommend ways and means to overcome the asset management Inefficiencies In the leather industry of Bangladesh.
OF 28 The study is based on financial statements published by the sample leather industry namely- Apex Tannery, Legacy Footwear, Apex Delhi Footwear and Beta shoe Complimented. Management uses a number of tools and devices for planning and controlling of financial activities of a concern. The commonly used techniques are: Ratio analysis. Fund Flow Analysis, Cash Budgeting, Cost- Volume-profit analysis, Capital Budgeting etc. Among the various techniques, ratio is considered a very admirable device because it has productive value.
Moreover it is also simple to compute and easy to understand the managing and the indication of profitable ratio. Asset management ratios measure how efficiently the asset is invested by the enterprises. In such a context activity or turnover ratio can be employed to evaluate the efficiency with which the firm manage and utilizes its assets. More over many researchers found that a number of ratios current ratios, stock turnover ratio and current assets to net sales etc can predict financial health and thus efficiency of asserts management of a concern.
