A well designed and implemented working capital management has a significant contribution for a concern’s profitability as well as to maintain liquidity powers. Every business weather public or private, profit organisation or non profit organisation, irrespective of its size and nature of business, and require enough amount of working capital. Working capital refers to the firm’s investments in short term assets. The management of working capital is important to the financial health of business of all sizes.
 The amounts invested in working capital are high in proportion to the total assets employed and so it is vital that these amounts are used in an efficient way. The management of working capital affects the liquidity and the profitability of the corporate firm and consequently its net worth. (Smith 1980).  Working capital management therefore aims at maintaining a balance between liquidity and profitability while conducting the day to day operations of business concern. Inefficient working capital management not only reduces the profitability of business but also ultimately lead to financial crises (Chowdhary and Amin 2007). The purpose of this paper is to observe tendency in working capital management and its effect on company’s performance. Keeping in sight the worth of working capital management’ an attempt has been made to study the working capital management through ratio analysis of the selected public sector undertaking Bharat Sanchar Nigam Limited (BSNL). The study is based on secondary data i.e. Annual Reports of the company and other data collected from its website. The period of study is five year (2011-2015) and ratio analysis technique of financial statement analysis has been adopted to examine the efficiency of working capital management in the selected unit.