Analysis on Working Capital Management and Financial Performance of Tata Steel

Abstract

This internship acts like a bridge between the institute and organization. It creates opportunities in real time to learn and apply skills and knowledge to actual workplaces. The real life situations contains data and analysis which have been already done by experienced and area experts. The situations are very different and dynamic when it comes to applying the learning which comes from college base in an artificial environment. The 2 month program helps us to apply our theoretical knowledge into the practical field. Working capital is the most important part of the financial section, when it comes to managing the current assets of an organization. Management of working capital thus becomes essential because it has a direct impact on the financial resources of the organization. Every business which has been performing well in the market with good returns to its investors has been focussing on this process in routine. A hallmark of good business management is the ability to utilize working capital management to maintain a solid balance between growth, profitability and liquidity. And this process differs from organization to organization depending upon their business type and market segment they approach. This project explains in details of working capital management and how it sis operated in an organization (especially in a steel industry). Various ratio analysis have been taken out on the basis of the data provided by the organization to identify the trend of this management in TATA STEEL LTD. , a leading manufacturer of the steel industry in the world and also a pioneer in providing various technology solutions all over the globe. Also a brief study has been taken out on the Indian steel industry as a whole with performance comparison of the company with its close competitor. Thus analysis studies the different techniques used by companies to manage their working capital in their business operations.