Critical Evaluation Of Management Of Working Capital Of Steel Industry “A Comparative Study Between Tata Steel And Steel Authority Of India Limited”

Abstract

Understanding the factors responsible for the management of working capital in both private and public sector enterprises has always been a challenging endeavor. However, there is a significant disparity in decision-making trends between the two sectors. Additionally, factors such as work culture, atmosphere, and organizational environment differ considerably between public and private sector enterprises, thereby impacting their operations. By examining various distinct factors such as inventory movement, cash level fluctuations, and reliance on current liabilities, one can identify the reasons behind the differences in working capital management between the two types of enterprises. While it is assumed that the utilization pattern of current assets and liabilities differs between these enterprises, it is essential to v[1]alidate this assumption. This analysis focuses on the Indian Iron and Steel Industry, with TATA STEEL and SAIL representing private and public sector enterprises, respectively. Relevant data has been gathered from the successive annual reports spanning the financial years 2014-15 to 2018-19 of both corporations. Authors strive to prove the statement through financial and quantitative tools.