Saudi Journal of Business and Management Studies (SJBMS)
Volume-10 | Issue-01 | 1-9
Original Research Article
Financing Design of Working Capital, an Empirical Study
Dr. Pradip Kumar Das
Published : Jan. 13, 2025
Abstract
Working capital in organization is akin to that of heart in human body. Efficient working capital management requires well-balanced funds without which either scarcity of funds will obstruct smooth functioning of organization or excess funds will prevent organization from conducting its operation dexterously. Hence, special emphasis must be given to the management of current assets investment in organization. Management can exercise different sources astutely in financing working capital. With a powerful chronicle, India has become a reputed name within the world steel industry. Financing design of working capital for Tata Steel Ltd. cogitates a strategic metamorphosis apropos of internal and external financial considerations. During the preceding decade, Tata Steel has peregrinated a propulsive international steel market, economic phase, and legislative initiatives, impressing its working capital financing dexterity. In this paper, an attempt has been made using secondary data to unearth the size of short-term financing design used to finance current assets along with the contribution of various sources in the context of Tata Steel Company, the selected steel company for the period of 10 years from 2014-2015 to 2023-2024. The study shows that besides fully meeting full financial requirements of current assets, short-term financing is also used to finance fixed assets. Proportion of various short-term sources in financing working capital requirements also shows mixed design over the years in the selected unit under study.