Financial Management in PSU’s: DMRC, A Case Study

A public sector undertaking may be defined as a business undertaking, which is owned managed and controlled by the State, on behalf of public at large. These undertakings have come to enjoy a unique position in the Indian economy in the post independence era. They have been responsible for forming a strong industrial base and providing the basic infrastructure for development in the country. From an investment in 5 enterprises of Rs. 29 crores in 1950-51. Investment in 242 Central PSUs has gone up to a staggering Rs. 2.04.054 crores, the net profit they made was just Rs. 13.725 crores -a return of 6.7 per cent only. FINANCIAL management involves the efficient collection and disbursement of Financial and any temporary investment of Financial while it resides with the firm. Financial management includes management of marketable securities also, because in modern terminology money comprises marketable securities and actual Financial in hand or in a bank. Thus Financial management is concerned with the management of Financial inflow and Financial outflow of the business concern, Financial flows within the business concern and Financial balance held by the business concern at any point of time. Management of Financial is of paramount importance for the overall activities of a business concern to survive and for smooth running. During the study period it was found that there was high volatility in total Financial payment and Financial ratio. High Financial turnover ratio indicates that board has better utilization of Financial resources and better financial management of Financial but this table indicates that only for few years it had high ratio and during most of the study period it had low ratio which is not worthwhile for the board. The average annual growth of the total Financial payment was 79.55% while the average Financial growth was (-) 17.22% which indicates dangerous Financial management by the board. The Financial management position of Delhi Metro Rail Corporation Ltd. Was found satisfactory because it has maintained adequate amount of Financial in hand and Financial at bank.