WORKING CAPITAL MANAGEMENT IN TATA STEEL LIMITED

Working capital management refers to the administration of all components of working capital-cash, marketable securities, debtors and stock and creditors. Working capital is one of the powerful measurements of the financial position. The words of H. G. Guthmann clearly explain the importance of working capital. “Working Capital is the life-blood and nerve centre of the business. The goal of working capital management is to manage the firm’s current assets and current liabilities in such a way that a satisfactory level of working capital is maintained. In several units there is adequate working capital but the mismanagement of working capital increases the costs and reduces the rate of return. The efficient management of working capital minimizes the cost and can do much more for the success of the business.