WORKING CAPITAL MANAGEMENT OF CENTRALPUBLIC SECTOR ENTERPRISES (CPSEs) IN INDIADURING THE POST-FINANCIAL RECESSIONPERIOD: EMPIRICAL EVIDENCE ONAGGREGATION

Working capital or circulating capital indicates circular flow of cash (cash-flow cycle), i.e., a sort of a revolving fund starting with cash used to pay for raw materials, labor, and operating expenses and when finished products are ready for sale, the cash is recovered through the sale of these, goods (on cash or credit).The present paper is an attempt in Central Public Sector Enterprises (CPSEs), during the post-financial crisis period, i.e. from 2010-11 to 2017-18, to empirically examine working capital management in India. Secondary data has been used for this reason, and statistical and econometric techniques have been used to evaluate the relevant time series data. The findings of the study concluded that CPSEs in India have managed their working capital efficiently (except last year) during the post-financial recession period, although they have followed an aggressive current assets policy. Additionally, the CPSEs had a positive impact on profitability, indicating that CPSEs have effectively used the various components of current assets during the study period. Nevertheless, it is required to improve the turnover of working capital to effectively generate liquidity in the years ahead.