Presentation on Working Capital

w.r.t Bhilai Steel Plant

Guided By: Presented By:

Mr. Prateek Deshlahra Alisha Kachchhap

Manager ( F&A Dept.) Vaishali Thakur
Bhilai Steel Plant MBA (Kalinga University ,
Raipur)
 Content
• Industry Profile

• Company Profile

• Objectives

• Research Methodology

• Data Analysis & Interpretation

• Findings & Learnings

• Conclusion

• Recommendations

• References
 Industry Profile

• It was founded in 19 Jan 1954

• SAIL is the 18th largest steel producer in the world

• 3rd largest steel producer in India

• 5 Integrated steel plants & 3 Special steel plants

• One of the Maharatna Company.

 Company Profile

• A unit of SAIL
• Inaugurated at 4 Feb 1959
• 11 times winner of the Prime Minister’s trophy for the
best integrated steel plant in India
• Sole supplier of country’s longest rails
• SAIL’s most profitable plant.
 Objectives of the study

• To know the current assets and liabilities of BSP

• To find out different ratios related with working capital.

Working Capital:
• The amount of funds that a company requires for financing its
day-to-day operations.

• Basically an indicator of the short-term financial position of an

organization and is also a measure of its overall efficiency.
Types of Working Capital:
 Ratio Analysis:

• Ratio analysis refers to the analysis of various pieces of

financial information in the financial statements of a business.

• A medium to understand the financial weakness and soundness

of an organization.
Types of Ratios:

• Current Ratio
• Quick Ratio
• Debt to Equity Ratio
• Inventory turnover Ratio
 Research Methodology:

Research Design Descriptive Research Design

Data Sources Primary & Secondary

Primary Data Sources Interaction, Observation & Plant Visit

Secondary Data Sources Internet, Literature reviews & Annual reports

Data Analysis &
Interpretation:
• Working Capital:
Working Capital

2018137.49

2019 1951.18

2020 1934.42

0 500 1000 1500 2000 2500

• Current Ratio:
Current Ratio

1.4
1.31
1.27
1.2

1.02
1

0.8

0.6

0.4

0.2

2020 2019 2018

• Quick Ratio:
Quick Ratio
1

0.9

0.86 0.86
0.8

0.7

2020
0.6
2019
0.5 0.560 2018

0.4

0.3

0.2

0.1

0
• Debt to Equity Ratio:
Debt to Equity Ratio
0.18

0.18
0.18

0.17

0.17

0.16
0.16

0.16
0.16

0.15

0.15
2020 2019 2018
• Inventory turnover Ratio:
Inventory Turnover rATIO
2.5

2020
2
2019

1.5
2018

0.5

1.4 2.13 2.13

0
Findings & Learnings:
• They use different software's

• They do not create debtors

• No huge variations

• Analysis of ratios.
 Conclusion:

• Bhilai Steel Plant (BSP) is an enormous unit and hence the evaluation of
its working capital management cannot be done thoroughly but, in our
brief, we have at our best tried to present a general idea of the working
capital management at BSP.

• Working Capital itself is a huge area and its components are managed at
different areas of SAIL.
 References:
• https://www.sail.co.in/
• https://www.myaccountingcourse.com/
• https://corporatefinanceinstitute.com/

Bibliography:

• Annual reports of SAIL

• Shukla S.M., Financial Accounting, Sahitya Bhawan
Publications
• Pandey I.M., Financial Management.