A STUDY ON WORKING CAPITAL MANAGEMENT WITH REFERENCE TO THE BHARAT HEAVY ELECTRICALS LIMITED HP&VP – VISAKAPATNAM
Addala Mounika Sri Lakshmi Sai Sowjanya - II MBA
email. Id: monikasowjanya314@gmail.com
Dr. B. V. R. Naidu, M.Com., MBA., Ph.D.,
Prof and HOD
Department of Management Studies
Godavari Institute of Engineering and Technology (Autonomous)
Rajamahendravaram, Andhra Pradesh, India
email. Id: drnaidubandaru@gmail.com
ABSTRACT
Working capital management is important for a company's financial statements and performance. It helps a company maintain a balance between its current assets and liabilities, and ensure future solvency. Working capital management aims to ensure that a company has enough cash to meet its short-term debt obligations and operating expenses. It also aims to invest a company's assets in the most successful direction possible. Working capital management involves tracking cash and cash needs, forecasting needs, monitoring cash balances, and optimizing cash flows.
The critical role of Working capital management in ensuring the financial health and operational efficiency of businesses. Effective management of working capital comprising inventory, accounts receivable, and accounts payable directly influences a company's liquidity, profitability, and overall performance. The findings underscore the necessity for companies to adopt a proactive approach to working capital, as it can enhance financial stability and competitive advantage in an ever-evolving business landscape. This paper aims to provide valuable insights for financial managers and decision-makers looking to improve their working capital strategies. BHEL follows rules and regulations to maintain a balance between current assets and liabilities. A study on BHEL found that the company has short term solvency and a satisfactory level of net working capital. The study also recommended that BHEL employees continuously work to improve the company's working capital position.
KEYWORDS: Working Capital Management, Current Assets & Liabilities, Financial Statements
