24-05-2014, 11:41 AM
Project Report On Working Capital Management In Orissa Power Transmission Corporation Limited
Corporation Limited.pptx (Size: 136.41 KB / Downloads: 44)
About the Organization
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.
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:-
Gross Working Capital:-
It includes all current asset invested in business enterprise.
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.
Results
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.
Conclusion & Recommendation
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.