Study on Measurement and Management of Cash Flow Efficiency of Tata Steel Limited (Standalone Company)

Study on Measurement and Management of Cash Flow Efficiency of Tata Steel Limited (Standalone Company)

Abstract – Cash is very important component in business. The main purpose of this study is to examine the incremental information content of operating cash flows in predicting the cash flow position of Tata Steel Limited. The present study covers 15 financial years from 2000-01 to 2014-15 to make analysis of cash flows is deemed quiet sufficient. Detailed cash flow analysis was made in Tata Steel (Standalone) company by adopting case study method. Ratio analysis, Simple percentage and cash management efficiency model were used for analysis. The overall cash flows of the company are good. If the company increases the operating cash flows to meet the total debt capital, it will lead to increase the better performance in cash flows.

Keywords – Cash flow, Incremental, Case study, Efficiency, Ratio, cash flow of tata steel.


Cash is an obvious and inescapable input into company’s operations as it has to be available in sufficient amounts according to needs, on a continuing basis. Cash is also the major and much awaited output of the company’s operations and there is the need for effective plans to deploy this liquid resource to utmost productive use. A company that is growing fast turning out a lot of profits may be continuously faced with a state of shortage of cash and a threat to the uninterrupted flow of production.

Cash analysis is useful for management, to assess its ability to meet obligations to trade creditors, to pay bank loans, to pay interest to debenture holders and pay dividend to shareholders and evaluating financial policies, cash position, and management plans and to coordinate the financial operations properly. So finding adequate funds for operating needs is a perennial preoccupation for the company’s finance manager. Paucity of cash, even on a temporary phase, is a source of trouble to most enterprises. Hence the study has analyzed the cash details of Tata Steel Limited in different dimensions.

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