A STUDY ON WORKING CAPITAL MANAGEMENT AT TVS TRAINING & SERVICES WITH REFERENCE TO MSME TRENDS IN INDIA

The MSME sector can thus be compared to the structural backbone of the Indian economy, contributing nearly 30 percent to GDP and employing over 110 million people. Despite their proverbial economic significance, MSMEs have continually struggled with working capital management, which is the determinant of liquidity, profitability, and operational sustainability. While this paper investigates the WCM practices at TVS Training & Services Limited in FY 2019-2023, it considers TVSTS as a service-based MSME under the aegis of the TVS Group. Using secondary data from audited financial statements of the company, the study attempted ratio analysis, trend analysis, comparative balance sheet analysis, and CCC computation to evaluate liquidity position, the efficiency of receivables and inventory management, and general financial performance. The results portray a visible three-phase pattern: pandemic-induced stress (FY 2020-2021), recovery (FY 2022), and sustained improvement (FY 2023). CCC shortened from 37 days at the peak to 21 days by FY 2023, and it was lower than the MSME sector average of 38 days. The net profit margin has improved from 5.1% in FY 2021 to 9.3% in FY 2023. The rising trend of short-term borrowings and erosion of equity in the subsequent years, however, shows structural financial risk signals. One of the important findings of the study is that although TVS Training & Services has very efficient working capital, its ability to sustain this in the long term depends on the restructuring of debts, highly disciplined cost management, and strengthening of liquidity buffers. The results are broadly applicable to the service sector of MSMEs and hold implications for both practitioners and policymakers.