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.

Infrastructure industry is growing at a fast pace in almost all sectors with the development and urbanization in the economy. The Indian government is also taking initiatives to develop the infrastructure sector. The construction industry in India has reported an estimated growth of 6.78% in the year 2006. According to a survey report,1 “The industry in India is highly fragmented and has about 300,000 construction companies operating nationwide. The government has allowed 100% foreign equity in the construction industry. Among the major infrastructure projects are the $7-8 bn India-Iran gas pipeline, the $2.8 bn construction of two power plants, and the $2.3 bn power project in Tamil Nadu”.

Infrastructure Journal, Indian Banks, Public Resources, Banking Sector, Commercial Banks, Infrastructure Projects, Gross Domestic Product, GDP, Corporate Financing, Project Financing Method, Credit Scoring Mechanism, Risk Assessment, Operational Risk, Organizational Structures, Infrastructure Development, Corporate Bond Market, Strategic Business Units, Indian Economy.