Working capital management of Nepal Doorsanchar company Limited

Abstract

Nepal Doorsanchar Company Limited is popularly known with its name as Nepal Telecom as a trade mark.It's powerful services oriented public company.Its products are lunched throughout the country having a nature of communication services. Financial structure and ownership of it is in variety manner. Government leadership in ownership is fully practiced except little public offering portion. Working Capital Management of Nepal Telecom under this study is revealed that it has so sound in financial section. Current assets, current liabilities, fixed assets are utilized by Nepal Telecom is able to generate high profit. As being the primary objective, profit generation, services in public sector is being tried effective. Study of five year operation since 2064/65 fiscal year to 2068/69, financial sector in its all surrounding with proper suggestion come to be true to meet the objectives. It sets the objective of setting working capital policies having the significance of current assets management. Forecast sale and actual sales with all variables are with how much deviation is the objective under the study. It focuses on the finding of short coming of present working capital management.Moreover, liquidity position is targeted to the study. The study focuses on various questions like  Does Nepal Telecom properly adopt the working capital management policies and practices?  Does Nepal Telecom manage current assets and current liabilities in right proportion?  What is the planning of Nepal Telecom in current assets investment?Under the methodological part, the study used tools like central tendency, time series analysis, standard deviation, ratio analysis all the tools helped in giving conclusion of thestudy by proving guidelines. Sources of data collection are given priority to the electronic media but physically collected data are found to be more reliable. The research study in Working Capital Management of Nepal Telecom during five year plan is quite satisfied. Current assets and current liabilities are increasing but no excess out of control in liability side. General profit management side is a little bid weak but no change to it. Sales volume of some product level is increasing and some are decreasing.Overall sales volume is in increasing trend. In the study of overall sense, new knowledge is developed for the controlling of irregularity;optimum level of cash management is needed to be stepped at first major suggestion by this study. Some of the other suggestion are following :  Determine optimum level of cash balance to hold every year applying cash management techniques. The study also revealed that the large portion of current assets being unproductive by lying in absolute liquid form in Nepal Telecom. This indicates the inefficiency of management of cash.  Forecast current assets and current liabilities variable with reference to change in sales and profit.  The study revealed the fact that Nepal Telecom fails to collect debt in time.Among the total receivables of Nepal Telecom, the largest portion is held by sundry debtors.