Working capital management has emerged as one of the most crucial elements of financial statements in every industrial unit. It significantly contributes to the improved performance of manufacturing companies. The current research concentrates on the working capital management of Bharat Heavy Electricals Limited (BHEL), a leading PSU in the heavy electrical industry in India, which is located in Bhopal. In this research paper, an attempt has been made to study the working capital management and performance of BHEL Bhopal, to examine the profitability and liquidity position of the company, and also assess its efficiency. For the purpose of the study, the data is collected from secondary sources. The present study considers 5 years of data starting from April 2017- March 2022. The data collection has been done through annual reports of BHEL Bhopal and ratios have been computed manually. this paper concluded that BHEL Bhopal’s performance was not satisfactory from 2019 to 2021 but can be improved afterward.

KEYWORDS: PSUs, Working Capital, BHEL, Liquidity, Profitability.