A Study of Working Capital Management of Hisar Project: Reliance Infrastructure Limited, India

This case focuses on various facets of working capital management at RIL at its Engineering, Procurement and Construction (EPC) division, which mainly deals in power projects. Financial analysis of the company has also been carried out to know its creditworthiness. Working capital management involves not only managing the different components of the current assets, but also managing the current liabilities, or to be more precise, financing the current assets. There are three main areas in working capital management and the study focuses on receivables management, cash management, and inventory management. RIL manages its receivable accounts through ageing analysis and manages its cash through management information system. Inventory management is made easier through the process of high sea sales and sale in transit. An analysis with respect to the company's competitors is done on a few fronts to further understand its position in the market. [PUBLICATION ABSTRACT]