This document summarizes working capital management at CCL, a coal mining subsidiary of Coal India. It discusses CCL's cash flow management, inventory management focusing on coal and spare parts, debtors management in selling coal mainly on credit to power and steel sectors. Problems in debt collection due to quantity and quality disputes are highlighted. The document provides recommendations to improve working capital cycle through better inventory management, strict credit policies, and fast dispute resolution. It concludes that following the recommendations can help CCL gain more business benefits and qualitative advantages.

1. Working Capital Management of
CCL
Submitted by:
MANOJ KUMAR

2. Content
 Introduction of CCL
 Working capital management
 Cash flow management
 Inventory management
 Debtors management
 Problems faced
 Findings
 Recommendations
 conclusion

3. Introduction
o A subsidiary company of coal India limited under ministry of
coal and mines govt. of India
o Production: annual production-> 48Mt (approx.). Target-> 50 Mt in the
FY 2010-11.
o CSR activities: spent over Rs. 18 Crores.
o Infrastructure:
o Mines: total- 63. underground (26), open-cast (37).
o Washeries: total- 7. medium cocking coal(4), non-cocking coal(3).
o Operating coalfields: 6. East Bokaro, West Bokaro, North Karanpura,
South Karanpura, Ramgarh, Giridih.
o Hospitals: central hospitals(2), regional hospitals(7), colliery
hospitals(10), dispensaries(63).
o Railway sidings: 28.

4. Working Capital
o The excess of current assets over current liabilities.
o Components -> current asset, Current liabilities, Gross and
net working capital, Gross working capital.
o Types -> permanent & Temporary.
o Need
o Factors determining working capital: manufacturing cycle,
production process, business cycle, seasonal variations, scale of
operations, inventory policy, credit policy, accessibility to credit, business
standing, growth of business, market conditions, supply situation,
environmental factors.

5. Working capital management in CCL
 Requirements:
• For purchasing spare parts like nut, bolt etc.
• For purchasing of small equipment.
• For purchasing fuels.
• For payments of wages, carriage etc.
 Few points for working capital management in CCL:
• Current Assets
 Cash Management
 Debtors Management
 Inventory Management
• Current Liabilities
 Creditor’s Management

6. Cash Flow statement
 Additional information to the user about the financial
statement.
 shows the flow of incoming and outgoing cash.
 shows the ability of the enterprise to generate cash and to
utilize the cash, and also shows the liquidity of the enterprise.
 CCL follows AS3, but both (direct and indirect).

7. Inventory management in CCL
 Types: coal, spares, WIP, press, medicine.
 Inventory department:
 Material budgeting:

8. Debtors management in CCL
 Cash basis:
 Sells coal to private parties like TISCO, IISCO.
 Only 10% cash received.
 Credit basis:
 90% coal is sold on this basis.
 Only for government parties.
 Power sectors: DVC, JSEB, PSEB, HSEB, UPRVUNL.
 Steel sectors: SAIL, BSP, BSL, RSP, DSP.
 Other sectors: defense, cement, fertilizer.

9. Problems faced by CCL in dues payment
system
• Quantity problems
• Difference in goods quantity supplied by CCL and received by the party.
• Quality problems
• CCL supplies C, D, E grade of coal in various industries.
• Party’s blame- it received E grade coal while CCL supplied D grade coal.
• Others.
• Moisture
• Stowing
• Settlement of disputes:
• Eastern umpire
• Western umpire
• Northern umpire
• Southern umpire

10. Findings

11. Findings

12. Recommendations

13. Recommendations

14. Recommendations

15. Conclusion
There are many problems faced by CCL in working capital
management.
However, after following suggested recommendations, CCL can
not only get more business benefit but can also approach
towards gaining qualitative advantage.

16. References
 Mr. A.D.WADWA (FINANCE MANAGER C.C.L RANCHI)
 Mr. AMIT SHEKHER TIRKEY (RANCHI UNIVERSITY,RANCHI)
 Miss. DEEPMALA MAHTO (RANCHI UNIVERSITY, RANCHI)