Introduction-

Working capital management involves the relationship between a firm's short-term assets and its
short-term liabilities. The goal of working capital management is to ensure that a firm is able to
continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and
upcoming operational expenses. The management of working capital involves managing inventories,
accounts receivable and payable, and cash.

Objective-

1. Tata steel has been managing the various aspect of working capital through continuous efforts
over a long period of time.

2. In my project work I am trying to identify the various systematic processes in managing the
working capital.

3. The study is trying to identify the various liquidity, profitability, solvency and the turnover
positions of the company as a tool of performance which will lead us to identify the financial
soundness of the company.

Problem-

1. To pay wages and salaries

2. To incur day to day expenses and overhead costs such as fuel, power, office expenses, etc.

3. To meet the selling costs as packing, advertising etc.

4. To provide credit facilities to the customers.

5. To maintain the inventories of raw materials, work-in progress, stores and spares and finished
stock.

Literature Review

-Sayaduzzaman (2006) investigates the efficiency in management of working capital in British

American Tobacco Bangladesh Company Limited. The study covers a five year period from 1999-
2000 to 2003-04. The researcher has analyzed the case with the help of financial tools and statistical
techniques and has found that working capital management of British American Tobacco Bangladesh
Company Limited is highly effective.

-Pandey and Upadhyay (2007) had undertaken the study to evaluate the efficiency of management
of working capital in Bokaro Steel Plant during the period from 1999 to 2005. Results show that
position of payment of liability was satisfactory but the management of inventory and receivable
was good.

Methodology-

The study will be based on the Quantitative and Qualitative approach of the working capital
management model at Tata Steel needs a thorough study. With the help of Ratio analysis & trend
analysis the result of the control mechanism can be summarized which will help in identifying the
effectiveness of the system under the preview. The data for the companies under analysis has been
taken from the respective websites of the companies. Microsoft excess has been used as a tool for
different calculations purposes and developing the charts.

References-

- Books:-

1- Financial Management By Khan and Jain

2. Management Accounting: 6th Edition by Khan

3. Financial Accounting for managers by Sanjay Dhamija

Websites

1. www.tatasteel.com

2. www.wikipedia.org

3. www.google.com

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