Liquidity Management in PSUs in Post-Reform Era: A Case Study of Bhel

The Management Accountant, Vol 48, No 8, August 2013

124 Pages Posted: 16 Jan 2015

See all articles by Debasish Sur

Debasish Sur

The University of Burdwan

Dr. Sumit Kumar Maji

University of Burdwan - Department of Commerce

Deep Banerjee

University of Burdwan

Date Written: August 2013

Abstract

In this study an effort was made to asses the liquidity performance BHEL for the period from 2000-01 to 2011-12. A significant declining trend in the short-term debt paying capability as well as the immediate debt paying capability of BHEL was noticed during the study period. Moreover, the efficiency in inventory management and cash management of the company stepped down notably with the passage of time during the period under study. All these negative attributes had definitely an adverse impact on the overall liquidity status of the company. This is also reflected in the outcome derived from the comprehensive rank test which indicates that there was a clear deterioration in the overall liquidity of the company during the second half of the study period. Another notable outcome of the study is that the association among the major liquidity indicators of the company during the study period was very significant. The study also reveals that there was a remarkable improvement in the overall profitability of BHEL throughout the period under study, although the company was not able to enhance the efficiency of its inventory management, debtors management and cash management during the same period.

Suggested Citation

Sur, Debasish and Maji, Dr. Sumit Kumar and Banerjee, Deep, Liquidity Management in PSUs in Post-Reform Era: A Case Study of Bhel (August 2013). The Management Accountant, Vol 48, No 8, August 2013, Available at SSRN: https://ssrn.com/abstract=2549662

Debasish Sur

The University of Burdwan ( email )

Bardhaman
Burdwan University
Burdwan, West Bengal 713104
India

Dr. Sumit Kumar Maji (Contact Author)

University of Burdwan - Department of Commerce ( email )

Department of Commerce
Burdwan-713104
Burdwan, IN West Bengal 713104
India
+919475939809 (Phone)

Deep Banerjee

University of Burdwan

Bardhaman
Burdwan University
Burdwan, West Bengal 713104
India

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