The project mainly focuses in detail the Financial Ratios and also understanding of the working capital management of IRCTC. This report will analysis and describe different ratios and how it manages its working capital. “It is meaningless to financially analyse a company without understanding the context and environment in which it operates”. As IRCTC has its monopoly in Indian Railways, so we will take a close look to intra firm analysis. A ratio is an arithmetical relationship between two figures. Financial ratio analysis is a study of ratios between various items or groups of items in financial statements. Ratios can be classified according to statements mainly they are profit and loss ratios or income statement ratios, balance sheet ratios or position statement ratios, mixed ratio or inter statement ratios
The ratios are calculated with the help of Annual report of IRCTC provided by the company; the data of last five financial years has been used for that. The project begins with the discussion about the scenario of Indian Railway and role of IRCTC in that. The project then describes the main concept- Ratios and their analysis by determining that why the ratios have changed, which can be due to the change in the accounting policies without a material change in the firm’s performance.
The focus of the project then shifts to Working capital which is concerned with the problems that arise in attempting to manage current assets, the current liabilities and the interrelationship between them. The goal of the working capital management is to manage the firm’s current assets and liabilities in such a way that a satisfactory level of working capital is maintained. Insufficient working capital can lead to insolvency and bankruptcy; hence it is of great importance to manage working capital efficiently. But sales do not convert into cash immediately, there is a