Working Capital Management in Iocl

The intended growth strategy demands a strong financial position to build and sustain the

growth story. Any company whether industrial or trading requires the current assets for day

to day working of the unit and these current assets are often referred as working capital of the

company and is one of the major contributors in improving profitability of any organisation

and is a vital component of success and survival i.e. both profitability and liquidity for the

organisation.

So looking at the importance of the working capital and working capital management, the

project was aimed to assist the company to analyse its present efficiency in terms of

managing working capital and assessing the future working capital requirement and assisting

to identify the major loopholes in various processes which are having or can have an adverse

effect on the working capital of the company and suggesting some of the important ways to

handle those condition.

The project started with understanding the company process and then reviewing the past

financial performances and working capital efficiency with the help of ratio analysis. The

next step was to see the operating cycles and the process of forecasting working capital and

then finding out the sources the company uses to raise these funds. The project also focuses

on the prevailing policies related to inventory, receivable, cash and payable