Authors: Bushra Parween, Firdous Naaz, Kahkashan Kausar, Khushi Nayak, Jyoti Kumari, Anuj Rajak, Dr. Sumita Roy, Dr. Ajay Kumar
Abstract: Working Capital Management Efficiency in Public Sector Enterprises: A Study of CCL, an investigation, endeavours to study the efficiency of working capital management practice in two prominent public sector enterprises namely Central Coalfields Limited (CCL), Ranchi and to measure their short-term assets and liabilities towards the liquidity, profitability and efficiency. The management of working capital has a great part to play in public sector enterprises and to make the functioning of the public sector enterprises effective. The design for the investigation is a descriptive design in a quantitative manner for conducting this study. Secondary data were utilized and were procured from annual reports, financial statements and other publication of CCL, Central Coalfields Limited, for the span of some chosen years. Some financial tools and ratios namely, ratio analysis, working capital turnover ratio, current ratio, quick ratio, inventory turnover ratio and debtor turnover ratio were used to measure the efficiency of the working capital. Also, a comparative analysis has been made with both of the enterprise. The conclusion has been that the efficiency of working capital has impact the profitability and liquidity of the public sector enterprises and that the analysis shown by that the working capital efficiency of CCL varies as per their inventory management, receivable management and overall liquidity position. Therefore, it has shown that good management and controlling is of utmost importance. In the end, it is concluded that a proper working capital management would be beneficial to the financial strength and increase in profitability of the public sector enterprise. It is recommended that both enterprises be aware for better controlling for their inventory management, receivable management, cash management and consequently their working capital efficiency.
