The document summarizes a study on working capital management of OPTCL, a power transmission company in Orissa, India. Key findings include that OPTCL had negative working capital over 2008-2011 due to current liabilities exceeding current assets. Current ratios were also unsatisfactory. Debtors were high and increasing, blocking more funds. OPTCL needs to improve working capital management by decreasing current liabilities, increasing revenue collection, and shortening average collection periods. Effective working capital management is important for organizational profitability and growth.

1. Company Guide: Faculty Guide:
Mr. Bibhuti Bhusana Nayak Mr. Dipti Ranjan Sarangi
A.G.M. (Prof. of AMITY)
(corporate finance)
Presented By:
Arpan Ghosh
MBA-3rd Sem
Amity Global Business School

2. "Finance is the art of passing currency from hand to hand
until it finally disappears."- Robert W. Sarnoff

3. ORISSA POWER TRANSMISSION CORPORATION LIMITED
(OPTCL), one of the largest Transmission Utility in the country
was incorporated in March 2004 under the Companies Act, 1956 as a
company wholly owned by the Government of Orissa to undertake
the business of Transmission and wheeling of electricity in the State.
 Started commercial operation from 01.04.2005 only as a
Transmission Licensee.
The registered office of the Company is situated at Bhubaneswar, in
State of Orissa. OPTCL became fully operational with effect from 9th
June 2005.

4.  Working Capital:- Working Capital are those capital which is
required or used to meet day to day expenses or financing of short
term or current asset it is called Working capital.
 Concepts of Working Capital:-
1. Gross Working Capital:- It includes all current asset invested in
business enterprise.
2. Net Working Capital:- It means Current Asset – Current
Liabilities.
 Working Capital Management:- The management of current
assets, current liabilities and inter-relationship between them is
termed as working capital management. It also include cash
management, Receivable Management and Inventory
Management.

5.  To study the various components of working capital.
 To analyze the liquidity trend.
 To analyze the working capital trend.
 To appraise the utilization of current asset and current liabilities
and find out short-comings if any.
 To suggest measure for effective management of working capital.

6. The following are the literature review by different authors and
different research scholars on Working Capital Management:-
 Hardcastle J (2009)., says that “Working capital, sometimes
called gross working capital”.
 Thachappilly G (2009)., says that “Working Capital Management
Manages Flow of Funds”.
 Dubey R (2008)., says that “The working capital in a firm
generally arises out of four basic factors like sales volume,
technological changes, seasonal , cyclical changes and policies of
the firm”.

7. Research methodology is a systematic approach in managing
research to achieve pre-defined objectives. It helps a researcher to
guide during the course of research work. It include:-
 Selection Of Topic:- After due consultation with the External guide &
Internal guide, the topic was finalized and titled as “A STUDY ON
WORKING CAPITAL MANAGEMENT”.
 Selection Of Location For The Study:- The location for study was
selected as the corporate office of OPTCL, Bhubaneswar.
 Sources Of Data Collection:-This project is based on secondary data
collected from Annual report of OPTCL 2008-2009, 2009-2010 & 2010-
2011.

8.  STATISTICAL TOOLS USED FOR DATA ANAYLSIS
 The various statistical tools used for data analysis is as follows:-
 a) Tables
 b) Bar-chart
 c) Graphs
 d) Correlation
 ANALYTICAL TOOLS USED
The analytical tools used for data analysis is as follows:-
 a) Ratio analysis
 b) Schedule of change in working capital
 c) Cash flow statements

9.  The first sections explain about the various components of
working capital, variable of working capital.
 The second section explains about the liquidity trend of the
organization.
 The third section explains about the working capital trend.
 The fourth section explains the utilization of current assets and
current liabilities.
 The fifth section explains the measure to effective management of
working capital.

10.  Working capital of three years i.e., (2008-2009, 2009-2010and
2010-2011) is in negative figure. The reason is that the company’s
current liabilities exceeds current assets.
 The standard current ratio is 2:1. And for OPTCL it is not
satisfactory. The reason behind such result is that the current
liabilities exceed current assets.
 Debtors of the company were high; they were increasing year by
year, so more funds were blocked in debtor.
 The firm is facing difficulty in paying short-term debt.
 The firm is not properly managing the sundry debtor.

11.  From the above study ,it is easy to conclude that working capital is
the lifeline of any organization. To stay healthy ,to stay in business
and to grow, it requires a strong working capital management plan.
 OPTCL is the soul of Orissa’s power transmission plays a pivotal
role in making power transmission through out the state. For
improvement of organization’s profitability, OPTCL need to
improve the working capital management system by decreasing the
current liabilities through reducing of over head expenses.
 Company should give more attention on increasing its collection of
revenue from wheeling of power.
 Management should focus on shortening its average collection
period by changing its credit terms and conditions.